UBS, a major bank, is set to pay a substantial penalty to the US Department of Justice for its involvement in the 2008 financial crisis. The DOJ has revealed that UBS has agreed to pay $1.435 billion in fines to settle allegations that the bank deceived investors while underwriting and issuing residential mortgage-backed securities (RMBS) between 2006 and 2007. Check out the latest reports about this below:
DOJ accuses UBS
The DOJ has accused UBS of knowingly providing false and deceptive information to those purchasing the securities, despite possessing assets worth almost $4 trillion.
According to the government, UBS knew that many of the securitized loans were unsupported, despite their representations to the contrary.
The bank issued these loans anyway, even though they were aware that they did not comply with loan underwriting guidelines.
The Department of Justice states that UBS conducted extensive due diligence before issuing these loans. Associate
Attorney General Vanita Gupta stated that the department is committed to holding accountable those who break the law and undermine the well-being of American families, as evidenced by this settlement.
The financial crisis of 2008 caused significant financial and emotional damage to people across the country, and many are still recovering from it today.
UBS is one of several institutions that has been penalized for its involvement in the 2008 financial crisis, alongside Bank of America, Barclays, Goldman Sachs, and JPMorgan.
Reporting the penalties paid by UBS
It is also important that we mention the fact that the US Department of Justice reports that the penalties paid by UBS bring the total amount collected by the government to just over $36 billion.
However, it’s estimated that the total loss suffered by households due to the crisis could be as high as $19.2 trillion, without adjusting for inflation.
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