UBS Pays $300 Million to Settle Credit Suisse RMBS Liabilities Under DOJ Deal

UBS has reached a $300 million settlement with the U.S. Department of Justice (DOJ) to resolve legacy obligations linked to Credit Suisse's residential mortgage-backed securities (RMBS) liabilities, as part of the post-2023 acquisition integration process. The agreement, finalized on August 1, 2025, addresses outstanding legal commitments inherited by UBS from Credit Suisse Securities (USA) LLC, the defunct subsidiary responsible for the RMBS-related obligations. UBS described the settlement as a necessary step to mitigate contingent risks and stabilize its balance sheet, with the firm anticipating the release of these liabilities in Q3 2025 [1][2].

The settlement aligns with UBS's broader strategy to transparently manage the legal and financial legacy of the Credit Suisse acquisition. The firm has already settled another high-profile issue in May 2025, paying $511 million to resolve a U.S. tax evasion investigation tied to Credit Suisse. These actions reflect UBS's proactive approach to addressing historical liabilities and maintaining regulatory compliance in the United States [1].

This resolution is part of a recurring trend among global banks, particularly Swiss institutions, to settle RMBS-related obligations dating back to the 2008 financial crisis. Similar settlements have been made by banks such as JPMorgan and Deutsche Bank, indicating that such actions are not uncommon in the post-crisis regulatory environment. The UBS settlement, however, highlights the persistent challenges of cross-border legal integration after major acquisitions. Analysts have noted that such agreements, while routine, can still carry reputational and operational risks for the acquiring firms [1].

UBS has not yet disclosed the full impact of these settlements on its 2025 earnings, leaving some uncertainty about the extent of the financial burden. However, the firm emphasized that the resolution will reduce uncertainties and contribute to a more stable financial outlook. The swift handling of these obligations also demonstrates UBS’s commitment to transparency and regulatory alignment, which are critical in maintaining trust with both regulators and investors [2].

Sources:

[1] The, [https://www.wsj.com/finance/ubs-to-pay-300-million-to-settle-credit-suisse-obligations-under-doj-dea-f1bd07e6?gaa_at=eafs&gaa_n=ASWzDAhZisrbeDmKPN4aTvJ16f1i3hqlXIMwahIxsRjfB_0Md_V2PsKeJqC_&gaa_sig=UpHNDvmKuxbv218MLhA43i_o6XvbaqI60M_iIfrSlDsbqoC8eLaVJIi5eej-DaoFbR9NFkcouEz4b8-fHR6FsQ%3D%3D&gaa_ts=68906e30](https://www.wsj.com/finance/ubs-to-pay-300-million-to-settle-credit-suisse-obligations-under-doj-dea-f1bd07e6?gaa_at=eafs&gaa_n=ASWzDAhZisrbeDmKPN4aTvJ16f1i3hqlXIMwahIxsRjfB_0Md_V2PsKeJqC_&gaa_sig=UpHNDvmKuxbv218MLhA43i_o6XvbaqI60M_iIfrSlDsbqoC8eLaVJIi5eej-DaoFbR9NFkcouEz4b8-fHR6FsQ%3D%3D&gaa_ts=68906e30)

[2] FinanzNachrichten.de, [https://www.finanznachrichten.de/nachrichten-2025-08/66075994-ubs-agrees-to-pay-dollar-300-mln-to-settle-credit-suisse-s-rmbs-consumer-relief-obligations-020.htm](https://www.finanznachrichten.de/nachrichten-2025-08/66075994-ubs-agrees-to-pay-dollar-300-mln-to-settle-credit-suisse-s-rmbs-consumer-relief-obligations-020.htm)