Pressure spreads to other banks as UBS settles with FHFA

It is the third bank to settle with the Federal Housing Finance Agency (FHFA), leaving the remaining 15 under growing pressure to follow suit.The settlement was revealed in the Swiss bank's latest quarterly accounts. The size of the deal has not been specified but the bank records a sum of £602,000 being charged for the litigation.

Breaching securities laws

According to The Guardian, the settlement is 'subject to documentation and final approvals by the parties'. UBS was sued with the other 17 banks by the FHFA which accused them of breaching securities laws by misleading Fannie Mae and Freddie Mac, two government-sponsored bodies which aim to stabilise the mortgage market. Citigroup and General Electric have already settled with the FHFA. Other banks which have not settled include Deutsche Bank, Goldman Sachs, Bank of America, Barclays and the Royal Bank of Scotland.