09.11.2018 01:20

UBS Will Contest RMBS Civil Complaint Filed by United States Department of Justice


Regulatory News:

The United States Department of Justice ("DOJ") today filed a civil complaint in the U.S. District Court for the Eastern District of New York related to UBS's issuance, underwriting and sale of residential mortgage-backed securities ("RMBS") more than a decade ago. The complaint seeks unspecified monetary civil penalties under the Financial Institutions Reform, Recovery, and Enforcement Act ("FIRREA") regarding transactions that date back to 2006 and 2007.

The DOJ’s claims are not supported by the facts or the law. UBS will contest the complaint vigorously in the interest of its shareholders. UBS is confident in its legal position and has been fully prepared for some time to defend itself in court.

UBS intends to rely on the following significant facts, among others, in its defense of this action and expects those facts to be substantiated in the course of the proceedings:

UBS Suffered Massive Losses on U.S. Mortgage-Related Assets, Including the RMBS Cited in the Complaint, Negating any Inference of Fraud

  • UBS invested USD 100 billion in U.S. residential mortgage-related assets and lost more than USD 45 billion when the housing market collapsed, including losses of nearly USD 900 million on the RMBS referred to in the complaint – more than the losses on the certificates UBS sold to any other single investor. This fact alone negates any inference that UBS engaged in an intentional fraud that was flatly against its own economic interest.

UBS Was Not a Significant Originator of U.S. Residential Mortgages

  • UBS originated only a miniscule proportion of U.S. residential mortgages between 2005 and 2007 (USD 1.5 billion of more than USD 5 trillion) and did not originate any subprime loans. The vast majority of loans underlying the 40 RMBS listed in the complaint were originated by other financial institutions, many of which issued their own RMBS. UBS stopped issuing RMBS in 2007.

UBS Fulfilled its Disclosure Obligations to Sophisticated RMBS Investors

  • The RMBS cited in the complaint were purchased by some of the biggest financial institutions in the world and other highly sophisticated investors who had access to loan data from a range of sources. In its offering documents, UBS repeatedly disclosed the risks of investing in the RMBS and made clear that investors could lose money if home prices declined.

Any Penalty Sought by the DOJ Would be Limited, at Most, to Losses to FIFIs

  • Following the savings and loan crisis, Congress enacted FIRREA in 1989 to protect federally-insured financial institutions ("FIFI”) and their depositors from insider abuse, and it was used for this purpose for two decades. This law was never intended to cover all sales of securities to all investors merely because a FIFI is among the investors or other parties involved in the transaction, as the DOJ seeks to misapply it here. UBS believes that FIRREA limits any claim against UBS to sales of the RMBS to FIFIs, who purchased only a small fraction of the certificates sold by UBS. The current losses on all certificates sold to FIFIs are lower than UBS’s own losses of nearly USD 900m in these same RMBS.

The Alleged Misrepresentations Did Not Cause RMBS Investor Losses

  • To obtain a FIRREA penalty based on investor losses, the DOJ must persuade the court to accept not only that UBS (despite its own massive losses on U.S. mortgage-related investments) engaged in intentional fraud but also that the alleged misrepresentations caused losses to investors in these RMBS. This theory flies in the face of the history of the housing crisis, which began with an unprecedented and unexpectedly severe collapse in U.S. home prices, triggering mortgage defaults and RMBS losses. The historic, market-wide downturn is commonly understood to be the result of a range of factors that created a housing bubble, including low interest rates and government policy.


Notice to investors

This document and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this document. Refer to UBS’s third quarter 2018 report and its Annual Report on Form 20-F for the year ended 31 December 2017 for additional information. These reports are available at

Cautionary statement regarding forward-looking statements

This document contains statements that constitute forward-looking statements. While these statements represent UBS’s judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS’s expectations. Additional information about those factors is set forth in documents furnished and filings made by UBS with the US Securities and Exchange Commission, including the third quarter 2018 report and the Annual Report on Form 20-F for the year ended 31 December 2017. UBS undertakes no obligation to update the information contained herein. UBS specifically prohibits the redistribution or reproduction of this material in whole or in part without the prior written permission of UBS, and UBS accepts no liability whatsoever for the actions of third parties in this respect.

Nachrichten zu UBS AG (N)

  • Relevant
  • Alle
  • vom Unternehmen
  • Peer Group
  • ?

Um Ihnen die Übersicht über die große Anzahl an Nachrichten, die jeden Tag für ein Unternehmen erscheinen, etwas zu erleichtern, haben wir den Nachrichtenfeed in folgende Kategorien aufgeteilt:

Relevant: Nachrichten von ausgesuchten Quellen, die sich im Speziellen mit diesem Unternehmen befassen

Alle: Alle Nachrichten, die dieses Unternehmen betreffen. Z.B. auch Marktberichte die außerdem auch andere Unternehmen betreffen

vom Unternehmen: Nachrichten und Adhoc-Meldungen, die vom Unternehmen selbst veröffentlicht werden

Peer Group: Nachrichten von Unternehmen, die zur Peer Group gehören

Analysen zu UBS AG (N)

  • Alle
  • Buy
  • Hold
  • Sell
  • ?
Keine Analysen gefunden.
mehr Analysen
Börse Stuttgart Anlegerclub

Fünf deutsche Internet-Aktien, die Sie kennen sollten!

Das Gute liegt oft so nah. Heimische Internet-Unternehmen rollen den Markt auf. Im neuen Anlegermagazin erwartet Sie ein Special über deutsche Internet-Aktien, die Sie kennen sollten.
Kostenfrei registrieren und lesen!

UBS Peer Group News

Keine Nachrichten gefunden.

Heute im Fokus

DAX über 11.200 Punkten -- Dow fester -- HelloFresh legt 2018 stärker zu als erwartet -- Tesla streicht Stellen -- Netflix: Umsatz unter Erwartungen -- Lufthansa, MorphoSys im Fokus

Daimler ändert Methodik seiner Prognosen ab Geschäftsjahr 2019. Sinkende Profitabilität bei Drägerwerk. US-Justiz verklagt vier ehemalige Audi-Manager im Diesel-Skandal. S&T kündigt Aktienrückkauf an. BMW erhält von Brilliance-Aktionären grünes Licht für Anteilserhöhung. Versicherung macht Gewinnplanung von WACKER CHEMIE zunichte. Telecom Italia erfüllt 2018 Gewinnerwartung.

Die 5 beliebtesten Top-Rankings

Erster Job
Wo Absolventen am meisten Geld verdienen
Abschlüsse der DAX-Chefs
Diese Studiengänge haben die DAX-Chefs absolviert
Die Performance der DAX 30-Werte in 2018.
Welche Aktie macht das Rennen?
Das sind die reichsten Länder Welt 2018
USA nicht mal in den Top 10
Die Performance der Rohstoffe in in 2018.
Welcher Rohstoff macht das Rennen?
mehr Top Rankings


Wie viele Zinserhöhungen der US-Notenbank erwarten Sie 2019? Brokerage

Online Brokerage über

Das Beste aus zwei Welten: Handeln Sie für nur 5 Euro Orderprovision* pro Trade unmittelbar aus der Informationswelt von!
Zur klassischen Ansicht wechseln
Kontakt - Impressum - Werben - Pressemehr anzeigen
Top News
Beliebte Suchen
DAX 30
Euro US-Dollar
Deutsche Bank AG514000
Daimler AG710000
Apple Inc.865985
Scout24 AGA12DM8
Aurora Cannabis IncA12GS7
Wirecard AG747206
BMW AG519000
Deutsche Telekom AG555750