According to a statement announced Monday by the United States Department of Justice, the private investment bank UBS, You will have to pay some $1.4 billion in fines after the financial institution allegedly defrauded several of its investors by selling dozens of mortgage-backed securities issued in 2006 and 2007.
According to Ryan Buchanan, US Attorney for the Northern District of Georgia, “UBS’s conduct in this case played a significant role in the cause of a financial crisis that hurt millions of Americans“, said.
In November 2018, the Department of Justice filed a civil action against UBSin which it was alleged that the Wall Street bank defrauded investors with false and misleading statements in connection with the sale of 40 RMBS.
Breon Peace, United States Attorney for the Eastern District of New York, “the substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to make illegal profit through fraud that we will hold them accountable no matter how long it takes,” he said.
For its part, Swiss bank UBS described the deal as a “legacy matter,” which has been provisioned for in prior periods. According to the US Attorney’s Office for the Eastern District of New York, this UBS case represents one of the last to be resolved where more than $11,000 million dollars has been collected for the collection of fines.
In addition, it was determined that another 18 entities received sanctions, including: Wells Fargo, Credit Suisse, Bank of America, Barclays, Citigroup, Goldman Sachs, Societe Generale, Royal Bank of Scotland, Deutsche Bank; General Electric, JPMorgan; Moody’s; Morgan Stanley, Nomura, HSBC and others, with which more than $36,000 million dollars has been raised.
Keep reading:
Source: La Opinion
