UBS Anticipates United States Department of Justice Will File Civil Complaint Relating to RMBS

Regulatory News:

UBS has been advised by the United States Department of Justice (“DOJ”) that the DOJ intends to file a civil complaint as early as November 8, 2018 related to UBS’s issuance, underwriting and sale of residential mortgage-backed securities (“RMBS”) more than a decade ago. UBS anticipates that the complaint will seek unspecified monetary civil penalties under the Financial Institutions Reform, Recovery, and Enforcement Act (“FIRREA”) regarding RMBS transactions that date back to 2006 and 2007.

The DOJs claims are not supported by the facts or the law. UBS will contest any such complaint vigorously in the interest of its shareholders. UBS is confident in its legal position and has been fully prepared for some time to defend itself in court.

UBS was not a significant originator of U.S. residential mortgages and suffered massive losses on its investments in U.S. mortgage-related assets when the U.S. housing market collapsed. This fact alone negates any inference that UBS engaged in an intentional fraud.

UBS fulfilled its disclosure obligations to RMBS investors and believes that FIRREA limits any penalty that the DOJ may seek to obtain to losses incurred by federally insured financial institutions, which were a fraction of the overall losses on RMBS certificates sold by UBS.


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This document and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this document. Refer to UBSs third quarter 2018 report and its Annual Report on Form 20-F for the year ended 31 December 2017 for additional information. These reports are available at

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This document contains statements that constitute forward-looking statements. While these statements represent UBSs judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBSs expectations. Additional information about those factors is set forth in documents furnished and filings made by UBS with the US Securities and Exchange Commission, including the third quarter 2018 report and the Annual Report on Form 20-F for the year ended 31 December 2017. UBS undertakes no obligation to update the information contained herein. UBS specifically prohibits the redistribution or reproduction of this material in whole or in part without the prior written permission of UBS, and UBS accepts no liability whatsoever for the actions of third parties in this respect.

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