In spite of a costly settlement with the FHFA over bad MBS sales, one of Europe's largest banks has beaten profit forecasts.
UBS, Switzerland's largest bank, has released results showing a nearly two-thirds increase in profit, Reuters has reported. The better-than-expected earnings come in spite of a settlement with the Federal Housing Finance Agency.
The FHFA sued UBS, along with 17 other banks, over the sale of mortgage-backed bonds to Fannie Mae and Freddie Mac. In releasing its second-quarter results today, UBS said it had reached an agreement in principle with the FHFA over the suit.
UBS did not reveal the amount of the FHFA settlement, but Reuters has reported the bank took a charge of around $920m to cover litigation costs, provisions and writedowns. Reuters said the bank, along with 13 others, last week lost in a bid to have a US appeals court intervene in their cases with the FHFA.