UBS expects to be sued by U.S. Justice Department over crisis-era mortgage securities

(Reuters) – UBS Group AG, Switzerland’s largest bank, said it expects to be sued by the U.S. Department of Justice as early as Thursday on civil charges related to the sale of mortgage-backed securities in the run-up to the 2008 global financial crisis, according to a company statement.

The bank said the claims were not supported by the facts or the law and it would contest any such complaint “vigorously.”

The U.S. Department of Justice did not immediately respond to a request for comment.

UBS said the Justice Department advised the bank that it intends to file the lawsuit. It anticipates the Justice Department will seek unspecified monetary penalties stemming from mortgage securities which date back to 2006 and 2007.

Source: Reuters

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