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Investing.com-- UBS Group AG (SIX:UBSG) said on Monday it reached a settlement with the U.S. Department of Justice over a 2017 case involving Credit Suisse’s residential mortgage-backed securities investments.
UBS said it will pay the DOJ $300 million to settle all of Credit Suisse’s consumer relief obligations under the 2017 settlement. The Swiss bank said it will recognize a credit in its third-quarter earnings on liabilities associated with its purchase of Credit Suisse.
“With this agreement, UBS has resolved another of Credit Suisse’s legacy issues, in line with its intention to resolve legacy matters at pace in a fair and balanced way and in the best interest of all its stakeholders,” UBS said in a statement.
UBS had bought Credit Suisse for about $3.2 billion in early-2023 in an all-stock deal brokered by Swiss authorities. The deal was brokered largely due to Credit Suisse’s role as a systematically important bank, but also saw UBS take on the former’s legal liabilities.
Credit Suisse was battered by a slew of scandals in the past two decades, especially at its investment banking unit. The Swiss bank had in 2022 agreed to pay the DOJ $495 million to settle a case around its RMBS units.