[Global] UBS will pay £1.1bn to settle 2008 crisis fraud claims

Swiss bank UBS has agreed to pay £1.1bn ($1.4bn) to resolve fraud claims in the US stemming from the 2008 financial crisis, BBC News reports.

The agreement brings to a close the final case brought by US prosecutors investigating banks' conduct leading up to the crash, which sparked a global downturn.

Prosecutors reportedly said UBS had lied about the quality of mortgages packaged and sold to investors in a series of deals in 2006-2007.

UBS did not admit or deny the claims.

In a statement, the bank said it had already set aside money for the "legacy" matter and stated that the deal would resolve all civil claims in the US.

UBS previously sought to have the case dismissed, saying prosecutors had not presented evidence of any intentional fraud.

In the lawsuit - brought in 2018 - US prosecutors alleged that the Swiss bank had misled investors in connection with the sale of mortgage-backed securities more than a decade ago.

Ryan K Buchanan - U.S. attorney for the Northern District of Georgia - said UBS' conduct had "played a significant role in causing a financial crisis that harmed millions of Americans".

"The scope of this settlement should serve as a warning to other financial institutions - both large and small - of the significant penalties that can result when corporations misrepresent vital information to investors and undermine trust in our public markets," he added.

UBS is one of the world's top investment banks and the eighteenth firm to reach a settlement in the US over its role in the 2008 crisis, according to prosecutors.

The deals have led to more than $36bn in penalties in total. They involve the world's biggest banks, ratings firms and others.

US banks including JP Morgan and Bank of America have reportedly agreed to pay far larger sums than UBS.

The exposure of global banks to bad US mortgages in the early 2000s played a key role in sparking the financial crisis, which led to a significant contraction in the global economy and the most severe downturn since the Great Depression of the 1930s in America.

Unexpected losses from the loans strained the financial system and led to the collapse of several major banks, including Lehman Brothers in the US in 2008.

Prosecutors have accused banks of fuelling the crisis with illegal mortgage lending that spread to the wider financial system as a result of the widespread trading of securities backed by mortgages.

Source: BBC News

(Quotes via original reporting)

Swiss bank UBS has agreed to pay £1.1bn ($1.4bn) to resolve fraud claims in the US stemming from the 2008 financial crisis, BBC News reports.

The agreement brings to a close the final case brought by US prosecutors investigating banks' conduct leading up to the crash, which sparked a global downturn.

Prosecutors reportedly said UBS had lied about the quality of mortgages packaged and sold to investors in a series of deals in 2006-2007.

UBS did not admit or deny the claims.

In a statement, the bank said it had already set aside money for the "legacy" matter and stated that the deal would resolve all civil claims in the US.

UBS previously sought to have the case dismissed, saying prosecutors had not presented evidence of any intentional fraud.

In the lawsuit - brought in 2018 - US prosecutors alleged that the Swiss bank had misled investors in connection with the sale of mortgage-backed securities more than a decade ago.

Ryan K Buchanan - U.S. attorney for the Northern District of Georgia - said UBS' conduct had "played a significant role in causing a financial crisis that harmed millions of Americans".

"The scope of this settlement should serve as a warning to other financial institutions - both large and small - of the significant penalties that can result when corporations misrepresent vital information to investors and undermine trust in our public markets," he added.

UBS is one of the world's top investment banks and the eighteenth firm to reach a settlement in the US over its role in the 2008 crisis, according to prosecutors.

The deals have led to more than $36bn in penalties in total. They involve the world's biggest banks, ratings firms and others.

US banks including JP Morgan and Bank of America have reportedly agreed to pay far larger sums than UBS.

The exposure of global banks to bad US mortgages in the early 2000s played a key role in sparking the financial crisis, which led to a significant contraction in the global economy and the most severe downturn since the Great Depression of the 1930s in America.

Unexpected losses from the loans strained the financial system and led to the collapse of several major banks, including Lehman Brothers in the US in 2008.

Prosecutors have accused banks of fuelling the crisis with illegal mortgage lending that spread to the wider financial system as a result of the widespread trading of securities backed by mortgages.

Source: BBC News

(Quotes via original reporting)