DOJ Hits UBS with Lawsuit Over Pre-Crisis RMBS Sales – NMP Skip to main content

DOJ Hits UBS with Lawsuit Over Pre-Crisis RMBS Sales

Phil Hall
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.”

 
Published
Nov 09, 2018
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
Builders, Lenders Praise Biden Plan To Improve Housing Supply

'Housing Supply Action Plan' seeks to improve affordability by increasing housing inventory over the next five years.

Regulation and Compliance
May 17, 2022
Trigger Leads Could Be Outlawed In Mortgage Industry

N.Y. congressman says selling the information increases risk of fraud, ID theft.

Regulation and Compliance
May 17, 2022
Georgia Governor Signs New Mortgage Licensing Law

Lessens impact on hiring of out-of-state employees with criminal records

Regulation and Compliance
May 10, 2022