Catenaa, Monday, August 04, 2025- UBS on Monday said it will pay $300 million to settle outstanding obligations related to the misselling of mortgage-linked investments by Credit Suisse in the US.
Last Friday, UBS said that Credit Suisse Securities agreed with the US Department of Justice to resolve all of Credit Suisse’s outstanding consumer relief obligations under the 2017 settlement for its Residential Mortgage-Backed Securities (RMBS) business.
Under the 2017 agreement, Credit Suisse agreed to pay $5.7 billion to settle with US authorities over claims it misled investors in residential mortgage-backed securities it sold in the run-up to the 2008 financial crisis.
The decline in mortgage payments reduced the value of the assets, leading to huge losses for investors.
“With this agreement, UBS has resolved another of Credit Suisse’s legacy issues, in line with its intention to resolve legacy matters at pace in a fair and balanced way, and in the best interest of all its stakeholders,” UBS said.
Credit Suisse agreed to pay $495 million in 2022 to settle one case brought by the New Jersey Attorney General that alleged the bank had “misled investors and engaged in fraud or deceit in connection with the offer and sale of RMBS.”
UBS said it expects to book a credit from the release of potential obligations it established at the time of the acquisition of Credit Suisse in the third-quarter results for its non-core and legacy business.
The agreement reached with the DOJ is in line with UBS’s aim to resolve legacy Credit Suisse matters at pace in a fair and balanced way, the bank said.
The deal follows another agreement with the DOJ in May to settle a years-long US tax probe into Credit Suisse. UBS paid $511 million to settle the investigation and booked a $427 million release of provisions in its second-quarter results.
