UBS has announced that it has closed with the Department of Justice uses a long -standing dispute relating to subprime mortgages against Credit Suisse, the rival acquired in 2023 to avoid their bankruptcy, whose integration is still completing. The dispute solution will cost $ 300 million, equal to around 259 million euros.
The commitment made by Credit Suisse
On August 1, 2025, Credit Suisse Securities (USA) LLC, entered into an agreement with the US Deparment of Justice, to resolve all the assistance obligations still pending towards Credit Suisse consumers, pursuant to the agreement stipulated in 2017 relating to the sale of securities guaranteed by mortgage loans (MBS, Mortgage-Backed Securities).
The Swiss bank has thus committed itself to paying $ 300 million to definitively close the matter. The agreement signed in 2017 by Credit Suisse had a value of 5.28 billion dollars and aimed, like other US business banks, to close a survey that had lasted for years, from the 2008 financial crisis.
The subprime, that is, loans or mortgages guaranteed by mortgage, provided to “high -risk” customers, were at the center of the 2008 financial crisis, having proved to be bargaining in the belly to the main American business banks (and not). As known, the crisis led to the failure of the Lehman Brothers and to the black crisis of Wall Street from the Great Depression in the 1930s.
UBS closes another question pendant of Credit Suisse
With this agreement, UBS has resolved another previous question of Credit Suisse, in line with its intention to “quickly resolve the issues that remained inhabited in a fair and balanced way and in the best interest of all its stakeholders”. The group has specified that the new agreement will have a positive impact on the results of the third quarter, thanks to the accounting of a credit in the non-core division.
Last May, UBS paid 511 million to close another investigation to Credit Suisse, relating to a hypothesis of tax evasion of wealthy customers assisted by the bank.
UBS noted Credit Suisse in 2023 under the pressure of the Swiss authorities to avoid the failure of a bank of systemic interest and then started an imposing work of remedying its activities, also eridizing a series of grains that is gradually resolving.
But it didn’t end there
In reality, the disputes in the USA are not yet closed. In 2023, UBS had paid about 1.5 billion dollars to close another dispute linked to subprime, the most pleasant fine in its history, weighing to put an end to all requests for damages without incurring losses, as the figures had already been set aside in the budget.
But Bloomberg estimates that another 500 million dollars are needed to truly close all the legal disputes, including those related to the bankruptcy of Archegos Capital Management in 2021.
