UBS to settle US mortgage claims

UBS reached an agreement in principle with US regulators to settle claims tied to mortgage-backed securities that were issued between 2004 and 2007.

The FHFA sued UBS and 17 other big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble.

UBS said it was booking about 865 million Swiss francs (approximately $997 million) of charges related to the settlement and a tax agreement between Switzerland and Britain.

An agreement in principle means UBS and US regulators have reached a preliminary deal in the dispute, but the terms may still need formal documentation, approvals or finalization before being legally binding.

The claims relate to mortgage-backed securities issued between 2004 and 2007 — the period leading up to the housing market peak often cited in related litigation.

Yes. UBS is booking the reported 865 million Swiss franc charge in connection with the settlement and tax agreement, which will reduce reported earnings for the period in which the charge is taken.

Yes. The FHFA sued UBS and 17 other large banks as part of the same claims alleging misrepresentation of mortgage-backed securities.

Monitor UBS regulatory filings and company statements for final settlement terms, timing of any payments or charges, and related disclosures; these details will clarify the financial and capital impact on the bank.