UBS will contest the matter and is confident in its legal position,
based on the facts and the law
ZURICH & BASEL, Switzerland–(BUSINESS WIRE)–Regulatory News:
UBS has been advised by the United States Department of Justice (“DOJ”)
that the DOJ intends to file a civil complaint as early as November 8,
2018 related to UBS’s issuance, underwriting and sale of residential
mortgage-backed securities (“RMBS”) more than a decade ago. UBS
anticipates that the complaint will seek unspecified monetary civil
penalties under the Financial Institutions Reform, Recovery, and
Enforcement Act (“FIRREA”) regarding RMBS transactions that date back to
2006 and 2007.
The DOJ’s claims are not supported by the facts or the law. UBS will
contest any such complaint vigorously in the interest of its
shareholders. UBS is confident in its legal position and has been fully
prepared for some time to defend itself in court.
UBS was not a significant originator of U.S. residential mortgages and
suffered massive losses on its investments in U.S. mortgage-related
assets when the U.S. housing market collapsed. This fact alone negates
any inference that UBS engaged in an intentional fraud.
UBS fulfilled its disclosure obligations to RMBS investors and believes
that FIRREA limits any penalty that the DOJ may seek to obtain to losses
incurred by federally insured financial institutions, which were a
fraction of the overall losses on RMBS certificates sold by UBS.
Notice to investors
This document and the information contained herein are provided solely
for information purposes, and are not to be construed as a solicitation
of an offer to buy or sell any securities or other financial instruments
in Switzerland, the United States or any other jurisdiction. No
investment decision relating to securities of or relating to UBS Group
AG, UBS AG or their affiliates should be made on the basis of this
document. Refer to UBS’s third quarter 2018 report and its Annual Report
on Form 20-F for the year ended 31 December 2017 for additional
information. These reports are available at www.ubs.com/investors.
Cautionary statement regarding forward-looking statements
This document contains statements that constitute forward-looking
statements. While these statements represent UBS’s judgments and
expectations concerning the matters described, a number of risks,
uncertainties and other important factors could cause actual
developments and results to differ materially from UBS’s expectations.
Additional information about those factors is set forth in documents
furnished and filings made by UBS with the US Securities and Exchange
Commission, including the third quarter 2018 report and the Annual
Report on Form 20-F for the year ended 31 December 2017. UBS undertakes
no obligation to update the information contained herein. UBS
specifically prohibits the redistribution or reproduction of this
material in whole or in part without the prior written permission of
UBS, and UBS accepts no liability whatsoever for the actions of third
parties in this respect.
UBS Group AG and UBS AG
+41-44-234 41 00
+41-44-234 85 00
UK: +44-207-567 47 14
APAC: +852-297-1 82 00