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.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
Using data for predictive analytics is the future of banking success, argued Jean-Laurent Bonnafé, CEO of BNP Paribas, in his session on how the bank is reinventing its approach to innovate with and for corporates.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.