UBS Anticipates United States Department of Justice Will File Civil Complaint Relating to RMBS
UBS will contest the matter and is confident in its legal position, based on the facts and the law
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.
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This document and the information contained herein are provided solely for information purposes, and are not to be construed as
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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
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