Skip to main content

DOJ Hits UBS with Lawsuit Over Pre-Crisis RMBS Sales

Nov 09, 2018
Swiss-based bank UBS’ announcement that the Department of Justice (DOJ) was preparing a civil action related to 40 residential mortgage-backed securities (RMBS) deals from 2006 through 2007 came to fruition sooner than later

Swiss-based bank UBS’ announcement that the Department of Justice (DOJ) was preparing a civil action related to 40 residential mortgage-backed securities (RMBS) deals from 2006 through 2007 came to fruition sooner than later.
 
The DOJ filed a lawsuit in federal court for the Eastern District of New York claiming UBS violated the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 based on mail fraud, wire fraud, bank fraud and other misconduct in relation to its RMBS activities. U.S. Attorney Richard P. Donoghue stated that investors in these securities “suffered catastrophic losses, which not only caused direct harm to those investors, but also contributed to the financial crisis of 2008.”
 
“The filing of this complaint makes clear that we will continue to hold financial institutions fully accountable for their conduct and will aggressively pursue financial fraud,” Donoghue added.
 
UBS issued a statement yesterday dismissing the DOJ’s claims as “not supported by the facts or the law,” adding that it would “contest any such complaint vigorously in the interest of its shareholders.”

 
About the author
Published
Nov 09, 2018
Under Trump, CFPB's Probes of Big Tech and Finance Firms Freeze Up

Companies may avoid consequences for alleged wrongdoing as the CFPB drops lawsuits against Capital One and Rocket Homes and pauses investigations into Meta and others — including providers of medical credit cards.

No FHA-Insured Loans For Non-Permanent U.S. Residents

In March 26 letter, HUD states change is effective May 25, aligns with Trump Administration policies

GSEs Ordered To Terminate Special Purpose Credit Programs

Fannie Mae’s and Freddie Mac’s current support for such SPCP programs is ‘inappropriate,’ FHFA has determined

Housing Shake-Up: HUD And FHFA Slash Staff, Close Offices

Federal housing agencies undergo sweeping cuts as Trump administration pushes aggressive downsizing

Plans to Build 3 Million New Houses

Selling and leasing government land is part of the Trump Administration’s initiative to spur the housing market

Mar 20, 2025
New FHFA Director To Prioritize Efficiency Over GSE Re-Privatization

Industry groups applaud Bill Pulte’s confirmation as FHFA Director, pledge to work on U.S. housing affordability ‘crisis’