UBS to pay $885M to settle lawsuit with U.S. housing agency

July 26, 2013 at 1:34 AM
1 of 2
| License Photo

WASHINGTON, July 26 (UPI) -- Swiss bank UBS has agreed to pay $885 million to settle a lawsuit over mortgages sold to the U.S. government-sponsored Fannie Mae and Freddie Mac.

Under the settlement, UBS, which operates in 50 countries and is the largest bank in Switzerland, will not have to admit any wrongdoing, The Wall Street Journal reported. The Federal Housing Finance Agency charged in its 2011 suit UBS provided false information about the risk of mortgage-backed securities it sold to Fannie and Freddie.

"The satisfactory resolution of this matter provides greater clarity and certainty in the marketplace and is in line with our responsibility for preserving and conserving Fannie Mae's and Freddie Mac's assets on behalf of taxpayers," Edward DeMarco, acting head of the FHFA, said Thursday.

The agency sued 17 banks in 2011 and has now settled with three. The UBS settlement was the first in which the amount to be paid was released.

Like Us on Facebook for more stories from UPI.com  
Latest Headlines
Top Stories
'Serial stowaway' arrested again at Chicago's O'Hare, Midway airports
Burt's Bees co-founder Burt Shavitz dies at 80
Encroaching sea levels endanger Pakistan's Indus Delta
Kim Jong Un had terrapin farm manager executed, says source
Hillary Clinton comments on Humans of New York photo of distraught gay youth