UBS Settles for $1.4 Billion in Mortgage-Backed Securities Fraud Case

UBS has agreed to pay $1.4 billion in civil penalties to settle a case brought by the Justice Department over fraud and misconduct in its offering of mortgage-backed securities dating back to the 2008 financial crisis. The settlement concludes the final case against major financial institutions, bringing the cumulative recoveries to $36 billion. UBS, along with other banks, sold mortgage-backed securities that did not comply with underwriting standards, despite being aware of the issues. The Justice Department has secured settlements with 18 other financial institutions over similar issues.