UBS Group said it agreed to pay $1.44 billion to settle a case with the Department of Justice regarding how it handled residential mortgage-backed securities.
The matter stems from 2006 and 2007 and relates to the issuance, underwriting and sale of the securities, UBS said in a statement Monday.
In 2019, a federal judge in Brooklyn, New York, denied UBS’s bid to dismiss the suit, which the DOJ brought in 2018. It accused the bank of selling tens of billions of dollars of residential mortgage-backed securities by “knowingly and repeatedly” making false and fraudulent statements to investors about the loans backing them.
UBS argued the suit should be dismissed because it failed to allege sufficient facts to show motive, opportunity or “deliberately illegal behavior.” The bank also argued that the U.S. failed to show “fraudulent intent” of any employees.
But U.S. Judge Margo Brodie in Brooklyn ruled the case should go forward, saying the government’s complaint “alleges strong circumstantial evidence of conscious misbehavior or recklessness.”
The agreement resolves all civil claims by the DOJ linked to the Swiss bank’s legacy RMBS business in the U.S., the company said in Monday’s statement. The settlement has been fully provisioned, according to the bank.
“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,” Ryan Buchanan, U.S. attorney for the Northern District of Georgia, said in a separate statement Monday.
Chasing productivity is one thing, but when you're cutting corners, missing details, and making mistakes, it's time to take a step back.
It is not clear how many employees will be affected, but none of the private partnership’s 20,000 financial advisors will see their jobs at risk.
The historic summer sitting saw a roughly two-thirds pass rate, with most CFP hopefuls falling in the under-40 age group.
"The greed and deception of this Ponzi scheme has resulted in the same way they have throughout history," said Daniel Brubaker, U.S. Postal Inspection Service inspector in charge.
Elsewhere, an advisor formerly with a Commonwealth affiliate firm is launching her own independent practice with an Osaic OSJ.
Stan Gregor, Chairman & CEO of Summit Financial Holdings, explores how RIAs can meet growing demand for family office-style services among mass affluent clients through tax-first planning, technology, and collaboration—positioning firms for long-term success
Chris Vizzi, Co-Founder & Partner of South Coast Investment Advisors, LLC, shares how 2025 estate tax changes—$13.99M per person—offer more than tax savings. Learn how to pass on purpose, values, and vision to unite generations and give wealth lasting meaning
