UBS Expects DOJ Lawsuit on Pre-Crisis RMBS Sales – NMP Skip to main content

UBS Expects DOJ Lawsuit on Pre-Crisis RMBS Sales

Phil Hall
Nov 08, 2018
UBS Group is waiting to be hit with a Department of Justice (DOJ) lawsuit related to its sale of residential mortgage-backed securities (RMBS) in period before the 2008 financial crisis

UBS Group is waiting to be hit with a Department of Justice (DOJ) lawsuit related to its sale of residential mortgage-backed securities (RMBS) in period before the 2008 financial crisis.
 
The Swiss-based bank issued a statement claiming the DOJ was planning to cite violations of the Financial Institutions Reform, Recovery, and Enforcement Act in a a civil complaint seeking unspecified monetary penalties related to RMBS sales from 2006 and 2007. UBS issued a statement denouncing the DOJ’s actions.
 
“The DOJ’s claims are not supported by the facts or the law,” said the bank in its statement. “UBS will contest any such complaint vigorously in the interest of its shareholders. UBS is confident in its legal position and has been fully prepared for some time to defend itself in court. UBS was not a significant originator of U.S. residential mortgages and suffered massive losses on its investments in U.S. mortgage-related assets when the U.S. housing market collapsed. This fact alone negates any inference that UBS engaged in an intentional fraud.”
 
The DOJ did not issue a comment on the UBS statement.

 
Published
Nov 08, 2018
Freddie Mac Announces Automation Of Key Underwriting Criteria

GSE says verification of assets, income, and employment increases efficiency and reduces risk

Regulation and Compliance
May 27, 2022
Fed Minutes: Peak Target For Benchmark Rate Is 3.13%

Minutes of May meeting reveal discussion of raising rates faster than anticipated.

Regulation and Compliance
May 26, 2022
Senate Confirms Thompson As FHFA Director

Had held title of interim director since June 2021.

Regulation and Compliance
May 26, 2022
Forum Calls For More Inclusive Access to Homeownership

FHFA, policy experts, and journalists join NAR-Urban Institute discussion on accessibility and affordability challenges.

Regulation and Compliance
May 23, 2022
CRA Impact May Not Be As Profound As Feared

CFPB Director Rohit Chopra tells MBA conference changes shouldn’t be difficult

Regulation and Compliance
May 17, 2022
A UDAAP Expansion

The CFPB’s new memo about consumer complaints

Regulation and Compliance
May 17, 2022