UBS is to pay $69.8m to resolve a US regulator's suit accusing the bank of selling toxic mortgage-backed securities to corporate credit unions that later failed. In February, the amount was $33m; however this new sum now includes pre-judgement interest. The settlement comes as the Federal Reserve prepares for its first interest rate hike in nearly two years. This resolves one of several National Credit Union Administration lawsuits against banks over their sale of toxic debt to five credit unions.
UBS is to pay $69.8m to resolve a US regulator's suit accusing the bank of selling toxic mortgage-backed securities to corporate credit unions that later failed. In February, the amount was $33m; however this new sum now includes pre-judgement interest. UBS has agreed to pay on April 22nd, with attorney's fees to be decided upon at a later date. This resolves one of several National Credit Union Administration lawsuits against banks over their sale of toxic debt to five credit unions.