UBS Sued Over $4.5B Fannie, Freddie RMBS Losses

Law360, New York (July 27, 2011, 3:53 PM EDT) -- The Federal Housing Finance Agency on Wednesday sued UBS AG in New York over losses on $4.5 billion worth of residential mortgage-backed securities Fannie Mae and Freddie Mac purchased based on false statements by units of the Swiss investment bank.

According to a complaint filed in federal court in Manhattan, FHFA, acting in its role as the conservator for Fannie and Freddie, alleged that UBS and subsidiary Mortgage Asset Securitization Transactions Inc. misrepresented the creditworthiness of borrowers and the quality of the origination and underwriting practices...
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