UBS has reached a settlement in one of the post-U.S. real estate market crashes. The Swiss bank also raised its second-quarter reserves to make amends for its crisis-era dealings
The Zurich-based bank has settled a residential mortgage-backed securities, or RMBS, case, and will pay a fine of around $850 million, it said in its second-quarter earnings report. The bank said most of the fine will be met by third parties, although the settlement still needs the approval of the court.
Settling the RMBS deal has proven more expensive than UBS had projected: the bank had expected to pay around $543 million in terms of an agreement reached at the end of 2017. However the administrator of the RMBS trust rejected the deal.
Switzerland’s biggest bank has increased its reserves in the second quarter by some 111 million Swiss francs to 2.44 billion francs. UBS still has to settle two large legal cases: the dispute with U.S. justice officials over mortgage-backed securities, as well as a major French tax dispute which will be heard in a Paris court this fall.
