UBS Pays $300 Million to Clear Credit Suisse Mortgage Case With DOJ

UBS Group AG said Monday it will pay $300 million to the U.S. Department of Justice, resolving a legacy Credit Suisse matter involving the sale of U.S. residential mortgage-backed securities before the 2008 financial crisis. The payment satisfies the remaining consumer-relief obligations from Credit Suisse’s 2017 agreement with the DOJ, under which the Swiss lender had committed $5.7 billion after authorities alleged it misled investors about the quality of the mortgage bonds. UBS, which acquired Credit Suisse in an emergency takeover in 2023, said the settlement will free up provisions and generate a credit in its third-quarter results. The bank is working through a list of other inherited cases as it integrates its former rival and adapts to higher capital requirements proposed by Swiss regulators.