NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced March 21 that UBS will pay $230 million to resolve allegations of misconduct in the lead-up to the financial crisis.
“Years later New Yorkers are still recovering from the housing crash, as communities grapple with the effects of plummeting home values, vacant properties, and an affordable housing crisis,” Schneiderman said in a statement. “[This] settlement marks another key step forward as New Yorkers rebuild their lives and communities. The dollars we’ve secured have funded critical housing programs across New York – and this settlement means even more community revitalization work in the years to come.”
UBS allegedly sold residential mortgage-backed securities (RMBS) to investors that were based on inaccurate statements or did not comply with underwriting guidelines.
Schneiderman has secured $3.93 billion from companies involved in the crisis.
“Thank you to [the attorney general] for holding large financial institutions accountable for their role in the financial crisis and for reinvesting the settlement funds back into our communities,” Adam Zaranko, president of the New York Land Bank Association and the executive director of the Albany County Land Bank, said in a statement.