UBS Pays $300 Million to Settle Legacy Credit Suisse Mortgage Obligations with US DOJ

Key Takeaways

• Settlement Finalized: UBS has paid $300 million to resolve Credit Suisse’s remaining obligations under a 2017 DOJ settlement on RMBS misconduct.
• Legacy Cleanup Continues: The move is part of UBS’s broader strategy to wind down Credit Suisse’s legal liabilities acquired during the 2023 takeover.
• Positive Financial Impact: UBS expects to record a credit in its Q3 results from the release of previously allocated liabilities tied to the acquisition.
• Historical Context: The DOJ's 2017 settlement with Credit Suisse originally required $5.3 billion in penalties and relief, including $2.8 billion in consumer relief, a portion that remained outstanding until now.

Deep Dive

UBS has reached a $300 million agreement with the U.S. Department of Justice (DOJ) to resolve one of Credit Suisse’s long-standing legal obligations tied to its pre-financial crisis mortgage practices, the bank announced on Monday.

The settlement addresses the final outstanding “Consumer Relief Obligations” Credit Suisse owed under a 2017 agreement with the DOJ related to its legacy Residential Mortgage-Backed Securities (RMBS) business. The obligations stem from Credit Suisse’s role in packaging and selling risky mortgage loans prior to the 2008 financial crisis.

The resolution was formally signed on August 1, 2025, by Credit Suisse Securities (USA) LLC. UBS, which acquired Credit Suisse in 2023, said the move is part of its strategy to quickly and transparently put to rest legacy legal issues inherited from its former rival.

“With this agreement, UBS has resolved another of Credit Suisse’s legacy issues, in line with its intention to resolve legacy matters at pace in a fair and balanced way and in the best interest of all its stakeholders,” the bank stated.

UBS also noted that it expects to recognize a credit in its third-quarter financial results within its Non-core and Legacy segment, reflecting the release of a contingent liability that was previously established during the Credit Suisse acquisition.

The $300 million payment marks a significant step in UBS’s ongoing cleanup of Credit Suisse’s legal overhang, one of the major concerns that accompanied the Swiss government-brokered rescue of the bank in the wake of its collapse in March 2023.

This agreement follows a string of actions by UBS to unwind risks and liabilities tied to Credit Suisse’s past misconduct, particularly in areas such as mortgage-backed securities, sanctions violations, and tax evasion, areas that triggered global investigations and hefty penalties over the last decade.

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