UBS has reached an agreement in principle in the US with the Federal Housing Finance Agency (FHFA) to settle claims that it mis-sold mortgage investments between 2004 and 2007.
Announcing its second quarter profits, the Swiss bank said that it has allocated 865m Swiss francs (CHF) to cover litigation, of which CHF100m relates to a deal with UK authorities to disclose details of British tax evaders and settle unpaid taxes.
UBS is one of 18 banks against which the FHFA has filed cases, as it seeks to recoup money owed to government-controlled housing giants Federal National Mortgage Association (aka Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac), which were taken into conservatorship in 2008 to prevent their collapse.
The FHFA alleged that UBS had misrepresented the quality of loans underlying around US$6.4bn of residential-mortgage-backed securities in which Fannie Mae and Freddie Mac had invested between September 2005 and August 2007, according to court documents released in April.
Rising interest rates, excitement around blockchain use cases and cross-border payments were all hot topics at this year's AFP conference in San Deigo.
On-Demand Treasury Management Solutions continue to gain increased adoption in the US and EMEA regions.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.
Treasurers are being expected to do more work with fewer resources than ever before, so it is little wonder that the automation of day-to-day operations was highly discussed on the second day of EuroFinance, the annual treasury event held in Barcelona this week.