UBS to pay $1.44B to settle 2007 mortgage fraud case

UBS will pay U.S. authorities $1.44 billion to settle the last lingering legal case over Wall

Street’s role in the housing bubble of the early 2000s, which ultimately led to the 2008 financial crisis and Great Recession. The Swiss bank agreed to pay a civil penalty over how it handled the sale of 40 mortgage-backed securities issued in 2006 and 2007. The settlement argues that UBS bankers gave false and misleading statements about the health of the mortgages in those bonds to the buyers in violation of federal securities law.