UBS agrees to $1.4 billion settlement with DOJ over 2008 financial crisis claims

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UBS agrees to $1.4 billion settlement with DOJ over 2008 financial crisis claims
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Swiss bank UBS has agreed to pay more than $1.4 billion in a settlement with the U.S. Department of Justice over alleged misconduct leading up to the 2008 financial crisis.

Advisor Group Chief Market Strategist Phil Blancato, Market Rebellion co-founder Jon Najarian and SW Retail Advisors founder Stacey Widlitz discuss whether the market is showing signs of a severe recession on"The Claman Countdown."to pay a $1.435 billion settlement to resolve civil claims over its alleged misconduct dealing in residential mortgage-backed securities in the years leading up to the 2008 financial crisis.

The DOJ announced the settlement Monday in a press release, saying it stemmed from a civil action the agency filed against UBS in November 2018, a decade following the worst economic downturn since the Great Depression. Swiss bank UBS has agreed to pay more than $1.4 billion to settle a DOJ civil claim over its sales of mortgage-backed securities in 2006 and 2007.

UBS confirmed the payout in a statement, adding that "the settlement has been fully provisioned in prior periods.""With this resolution, UBS will pay for its conduct related to its underwriting and issuance of residential mortgage-backed securities," U.S. Attorney Breon Peace for the Eastern District of New York said in a statement.

U.S. Attorney for the Eastern District of New York Breon Peace speaks during a news conference at the Justice Department in Washington, D.C., on Jan. 18, 2023.

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