The logo of UBS is seen outside the building housing the headquarters of the Swiss bank in San Juan, Puerto Rico, July 31, 2015. REUTERS/Alvin Baez NEW YORK (Reuters) - UBS AG is now expected to pay $69.8 million to resolve a U.S. regulator’s lawsuit alleging it sold toxic mortgage-backed securities to corporate credit unions that later failed, according to a Friday court filing. The accord was valued at $33 million when it was disclosed in February, but the new sum includes pre-judgment interest, according to a letter filed in Manhattan federal court by lawyers for the National Credit Union Administration. UBS agreed to make the payment on April 22, the lawyers said. Attorneys’ fees would be determined later. The accord resolves one of several NCUA lawsuits against banks over their sale of toxic debt to five credit unions. Earlier this week, the NCUA said it would receive $50.3 million, including interest, in a similar settlement with Credit Suisse Group AG whose value had previously been estimated at $29 million. Last month, the presiding judge in both cases, U.S. District Judge Denise Cote, issued a ruling on how to calculate interest. The NCUA has recouped more than $3 billion in similar litigation. The case is National Credit Union Administration Board v. UBS Securities LLC, U.S. District Court, Southern District of New York, No. 13-06731. Reporting by Jonathan Stempel in New York; Editing by James Dalgleish
UBS is to pay $69.8m to resolve a New York 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.