UBS to pay $230 million in US subprime settlementStaff Writer | March 22, 2018
UBS will pay $230 million to settle charges it misrepresented mortgage-backed securities in the run-up to the financial crisis, New York State officials announced.
Banking The seventh large financial institution
The agreement is the latest in a long line of settlements in which a big bank has agreed to cash payouts to move past a regulatory crackdown after mass defaults on subprime loans sparked the 2008 financial crisis.
"Years later, New Yorkers are still recovering from the housing crash, as communities grapple with the effects of plummeting home values, vacant properties, and an affordable housing crisis," said New York Attorney General Eric Schneiderman in a news release.
"Today's settlement marks another key step forward as New Yorkers rebuild their lives and communities."
The agreement includes a $41 million cash payment to New York state and $189 million in customer relief for New York homeowners.
UBS is the seventh large financial institution to settle with Schneiderman, who said the agreements have yielded $3.9 billion in cash and consumer relief for New York since the housing bust. ■