$919 Million Litigation Matters Pre-Tax Charges to be Included in UBS AG (NYSE:UBS)’s Results for the Second Quarter
UBS AG (ADR) (NYSE:UBS), a Zurich bank reported on Monday that its alleged issue of misrepresentation of ready to be sold US mortgage bonds has been resolved with a United States regulator.
According to UBS AG its results of the second-quarter will also have litigation matters’ pre-tax charges; these will be $919 million, which is equivalent to 865 million in Swiss francs
Corporate sector of the bank is booked with charges of about CHF700 million, which holds the banking businesses of legacy investment; these are being unwound because UBS hopes to be more active in offering services in private banking.
May banks are tracked by federal regulator for US mortgage; USB is also included in these banks that were accused of flawed mortgage-backed securities sales leading to the US economic crises. UBS says that these claims by FHFA are for the years between 2004 and 2007; according to the bank further judgment on this issue is pending.
UBS’ credit bets during US housing crisis caused the bank $50 billion in losses, which pushed UBS to take help from the Swiss government in 2008.
The latest trade day shows that shares of UBS AG (ADR) (NYSE:UBS) went up by 1.36% ($18.64) and closed at this value. With 0.20% ROA and 5.40% ROE, UBS is ahead of most of its competitors.