UBS to pay $1.43bn in penalties over mortgage fraud prior to 2008 crisis

Banking group settles US government lawsuit alleging fraud related to residential mortgage-backed securities in 2006 and 2007

Banking group UBS has agreed to pay $1.43bn in penalties to settle a civil action alleging fraud in the sale of residential mortgage-backed securities ahead of the 2008-09 financial crisis, the company and the US justice department said on Monday.

The civil action was filed in November 2018 alleging misconduct related to UBS's underwriting and issuance of residential mortgage-backed securities (RMBS) issued in 2006 and 2007, according to the justice department.