UBS to now pay $69.8 mln in U.S. credit union settlement

ezgif.com-resizeUBS AG is now expected to pay $69.8 million to resolve a U.S. regulator’s lawsuit alleging it sold toxic mortgage-backed securities to corporate credit unions that later failed, according to a Friday court filing.

The accord was valued at $33 million when it was disclosed in February, but the new sum includes pre-judgment interest, according to a letter filed in Manhattan federal court by lawyers for the National Credit Union Administration.

UBS agreed to make the payment on April 22, the lawyers said. Attorneys’ fees would be determined later.

The accord resolves one of several NCUA lawsuits against banks over their sale of toxic debt to five credit unions.

Earlier this week, the NCUA said it would receive $50.3 million, including interest, in a similar settlement with Credit Suisse Group AG whose value had previously been estimated at $29 million.

Source: Reuters

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