UBS AG (UBSN) was sued by U.S. regulators over $4.5 billion in residential mortgage-backed securities sold to Fannie Mae and Freddie Mac, the mortgage companies operating under government control.
The Federal Housing Finance Agency, which regulates the two enterprises, sued UBS and several executives of UBS’s Mortgage Asset Securities Transactions unit in federal court in Manhattan today, claiming they misstated the risks of the investments.
Full story: UBS sued by regulator over $4.5 billion mortgage-backed securities sale