US Demands $1.435 Billion From Banking Giant
• The US Department of Justice has alleged that UBS defrauded investors and issued mortgage-backed securities without due diligence during the Great Financial Crisis of 2008.
• UBS has agreed to pay $1.435 billion in penalties to settle these allegations.
• This settlement brings the total amount of fines paid by banks in relation to the 2008 crisis to over $36 billion.
Allegations Against UBS
The US Department of Justice (DOJ) has accused banking giant UBS of fraud and a role in the Great Financial Crisis of 2008 for issuing residential mortgage-backed securities (RMBS). According to the DOJ, UBS knowingly made false and misleading statements regarding property values associated with many securitized loans, despite doing extensive due diligence. Furthermore, it was determined that many of these loans did not adhere to loan underwriting guidelines which UBS was aware of. Associate Attorney General Vanita Gupta commented on this matter stating, “In the wake of the 2008 financial crisis, people all across the country experienced financial ruin and emotional devastation, and many are still recovering nearly 15 years later.”
UBS Agrees To Pay Hefty Fine
In response to these allegations, UBS has agreed to pay a hefty fine of $1.435 billion in penalties as part of a settlement with the DOJ. This adds up to all banks collectively paying over $36 billion in relation to events that occurred during the 2008 crisis – even though reports estimate household losses from this event were as high as $19.2 trillion when adjusting for inflation. Other institutions who have already settled such penalties include Bank of America, Barclays, Goldman Sachs and JPMorgan Chase & Co., among others.
Great Financial Crisis Of 2008
The Great Financial Crisis began with subprime mortgages leading up 2007-2008 which caused widespread damage throughout global markets including housing prices plummeting and increased foreclosures across North America and Europe – leading up a recessionary period for many countries around world economy suffered a major blow due to lack confidence in banking institutions following this event which is still felt today more than 15 years later..
UBS’ agreement with DOJ marks another chapter closed in terms holding financial institutions accountable for their roles in causing or exacerbating effects from events related to 2008s Great Financial Crisis – though some may argue that it does not come close enough representing actual losses incurred by households during this time frame nor does it account for long term impact stemming from it today . It remains unclear if any further action will be taken against other firms involved or how much more restitution is being sought out at present but what is clear is that those adversely affected by decisions taken prior should continue push justice systems around world seek fair compensation them moving forward .