UBS has paid $445 million to settle alleged investor losses on residential mortgage-backed securities it peddled before the financial crisis.
The payment settles claims in a federal lawsuit resulting from alleged losses related to the acquisition of RMBS by two corporate credit unions that failed in 2009.
U.S. Central Federal Credit Union and Western Corporate Federal Credit Union were both placed into conservatorship in March 2009.
The financial institutions both allegedly suffered losses from the securities sold by UBS, and the National Credit Union Administration is collecting the recoveries on the two credit unions’ behalf.
UBS paid out $79.3 million
last month for losses suffered by two other corporate federal credit unions, Members United and Southwest.
In all, the NCUA says it has collected $4.8 billion in recoveries on behalf of corporate credit unions.