UBS agrees to settle U.S. claims it misrepresented mortgage bonds

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http://www.latimes.com/business/money/la-fi-mo-ubs-settlement-mortgage-fannie-mae-freddie-mac-20130722,0,6880576.story

WASHINGTON — UBS said Monday it agreed to settle a lawsuit brought by U.S. regulators alleging the Swiss banking giant misrepresented mortgage-backed securities sold to Fannie Mae and Freddie Mac in the years leading up to the subprime-loan meltdown.

UBS did not specify the size of the settlement with the Federal Housing Finance Agency, the regulator for Fannie and Freddie. But in a statement the bank said its second-quarter earnings would include a $746 million pretax charge for litigation matters related to its previous housing market activity.

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