Core Insights - UBS Group AG has agreed to pay $300 million to the U.S. Department of Justice to resolve issues related to the mis-selling of mortgage-linked investments by Credit Suisse [1][8] - The settlement addresses Credit Suisse's remaining obligations from its 2017 $5.28 billion settlement concerning residential mortgage-backed securities [1][8] Group 1: UBS and Credit Suisse Settlements - In January 2017, Credit Suisse reached a $5.28 billion settlement for its role in selling residential mortgage-backed securities from 2005 to 2007, which included a $2.48 billion civil penalty and $2.8 billion in relief measures [2][3] - UBS resolved its own RMBS case with the DOJ in August 2023, agreeing to pay approximately $1.44 billion in civil penalties shortly after acquiring Credit Suisse for $3.25 billion [4] Group 2: Regulatory Investigations and Implications - UBS faced a $511 million settlement in May 2025 related to a tax probe against Credit Suisse for preparing false income tax returns and tax evasion [5][6] - The DOJ's investigation revealed that Credit Suisse assisted in tax evasion through offshore accounts, concealing over $4 billion from the IRS [6] Group 3: Market Performance and Future Outlook - UBS shares have increased by 11.9% over the past six months, while the industry has seen a 17.6% rise, indicating a lag in performance [7] - The accumulation of inherited fines from Credit Suisse is expected to lead to increased litigation provisions for UBS in the near term [8]
UBS to Pay $300M to Settle Credit Suisse Mortgage Securities Lawsuit