2023-08-14 19:50:00
Subprime crisis
UBS pays 1.435 billion to close lawsuits in the United States
The US Department of Justice believes that the Swiss bank’s sale of “toxic” financial products led to the 2008 financial crisis.
PostedAugust 14, 2023, 9:50 PM
In announcing this agreement, linked to acts that occurred in 2006-2007, UBS indicated that the sum had already been fully provisioned in its accounts.
AFP
UBS has reached an agreement with the American courts to close, in exchange for the payment of 1.435 billion dollars (just over 1.25 billion francs), civil lawsuits for fraud, linked to the sale of toxic financial products subprimethe cause of the 2008 financial crisis.
The US Department of Justice said on Monday that this transaction put an end to the last lawsuits it initiated after the crisis. In total, it has collected more than 36 billion dollars (31.6 billion francs) from around twenty banks, rating agencies or lending organizations.
The Swiss bank indicated, in a separate statement announcing this agreement related to acts that occurred in 2006-2007, that the sum had already been fully provisioned in its accounts.
Almost five years of procedure
The procedure was launched in November 2018 by the American justice. It focused on the design and sale of securities secured by residential mortgages (mortgage backed security (RMBS). Defaults by the households that took out the loans led to a cascade of charges and provisions in the global financial sector and, ultimately, to the 2008 crisis.
“This agreement represents accountability for those who thought they were above the law,” said Georgia State Attorney Ryan Buchanan. According to him, the behavior of UBS “played a significant role in the causes of the financial crisis which affected millions of Americans”.
“UBS’s behavior played a significant role in causing the financial crisis that affected millions of Americans.”
Ryan Buchanan, procureur
The complaint from the US authorities accused UBS of having “knowingly made false and misleading statements to buyers” of these financial products and of having “committed fraud against investors, related to the sale of 40 RMBS in 2006 and 2007.
Eighteen other establishments prosecuted
In addition to UBS, the Department also prosecuted Ally Financial, Aurora Loan Services, Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, General Electric, Goldman Sachs, HSBC, JPMorgan, Moody’s, Morgan Stanley, Nomura, Royal Bank of Scotland , Standard&Poor’s, Societe Generale and Wells Fargo.
In 2014, Bank of America reached a record $16.62 billion settlement to close civil lawsuits filed by the Department and other federal and state agencies, including $7 billion in victim awards. of the crisis.
(AFP)Show comments
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