by Giles Cadman
The U.S. government has reached “an agreement in principle” to settle its lawsuit against Swiss banking giant UBS AG that seeks to recoup more than $900 million US in losses from mortgage-backed securities, the bank announced Monday.
This is part of a far broader case against a number of other financial institutions.
In 2011, the U.S. government sued UBS and 17 other financial firms for selling some $196 billion worth of mortgage-backed securities to housing financing agencies Fannie Mae and Freddie Mac. However the securities turned toxic when the housing market collapsed.
The details of the settlement are unknown.
UBS released no more details or costs of the settlement, which it said still required “final approvals by the parties.”
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