UBS has agreed to pay $300 million to resolve a legal dispute related to mortgage securities originally linked to Credit Suisse, according to an announcement on Monday. The Zurich-based bank’s settlement with the US Department of Justice (DOJ) will satisfy outstanding consumer relief obligations dating back to a 2017 agreement.
Background of the case
The case stems from mortgage-backed securities sold prior to the 2008 financial crisis. Credit Suisse, which UBS acquired in 2023, had faced multiple investigations and settlements regarding alleged misrepresentations in its mortgage securities offerings. The DOJ’s 2017 settlement with Credit Suisse included commitments to consumer relief and financial penalties.
Settlement details
UBS’s recent $300 million payment addresses the remaining consumer relief components of the earlier settlement, effectively closing outstanding obligations. The agreement allows UBS to move forward without further liability related to these specific mortgage securities cases in the United States.
Impact on UBS
The payment, while substantial, is seen as a step to clear regulatory uncertainties and improve UBS’s legal standing following its acquisition of Credit Suisse. UBS confirmed the settlement will not materially affect its capital position or ongoing operations. The bank emphasised its commitment to compliance and maintaining robust governance frameworks.
Regulatory and market context
This settlement comes amid heightened scrutiny of financial institutions over past misconduct linked to the global financial crisis. US regulators continue to pursue enforcement actions to ensure accountability and consumer protection in the mortgage and securities markets.
Looking ahead
With the resolution of this case, UBS aims to focus on integrating Credit Suisse’s operations and strengthening its market position. The settlement marks an important milestone in addressing legacy issues, allowing the lender to better direct resources towards growth and client services.
REFH – Newshub, 11 August 2025
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