{"id":5969,"date":"2016-04-18T00:00:00","date_gmt":"2016-04-18T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2016\/04\/bancorp_418"},"modified":"2022-05-18T14:51:10","modified_gmt":"2022-05-18T19:51:10","slug":"bancorp-418","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/bancorp-418\/","title":{"rendered":"Bancorp-UBS Trial over $2.1B of Mortgage-Backed Securities Begins"},"content":{"rendered":"

UBS (UBS) <\/a>is on trial in Manhattan federal court. According to Reuters<\/em>, the civil case was brought by UBS Bancorp (USB) for three trusts. The trusts claim that in their contract with the Swiss banking giant, UBS agreed that the mortgages backing the securities would satisfy certain standards. However, they contend, when it became clear the mortgages were faulty, UBS would not repurchase them. Now, the trusts want back the $2.1B that they lost. <\/p>\n

UBS\u2019s legal defense team argued that the lawyers of the trust are assessing the loans from the perspective of \u201chindsight bias.\u201d They want U.S. District Judge Kevin Catel to evaluate whether when the loans were considered defective at the time that they were issued in 2006 and 2007.<\/p>\n

According to the mortgage-backed securities lawsuit, over 17,000 loans were pooled into three trusts, which issued securities granting investors the right to borrower-made payments. The problem was, contend the plaintiffs, over 9,600 of the loans were defective, primarily because of borrower fraud or because they did not meet underwriting requirements. The trusts believe that UBS did not properly vet the loans, which it obtained through shady lenders that would go on to fail. \n<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

UBS (UBS) is on trial in Manhattan federal court. According to Reuters, the civil case was brought by UBS Bancorp (USB) for three trusts. The trusts claim that in their contract with the Swiss banking giant, UBS agreed that the mortgages backing the securities would satisfy certain standards. However, they contend, when it became clear […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3757,3755],"tags":[3612],"class_list":["post-5969","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-mortgagebacked-securities","category-ubs","tag-bancorp"],"yoast_head":"\nBancorp-UBS Trial over $2.1B of Mortgage-Backed Securities Begins — Investor Lawyers Blog — April 18, 2016<\/title>\n<meta name=\"description\" content=\"UBS (UBS) is on trial in Manhattan federal court. According to Reuters, the civil case was brought by UBS Bancorp (USB) for three trusts. The trusts claim — April 18, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/bancorp-418\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Bancorp-UBS Trial over $2.1B of Mortgage-Backed Securities Begins — Investor Lawyers Blog — April 18, 2016\" \/>\n<meta name=\"twitter:description\" content=\"UBS (UBS) is on trial in Manhattan federal court. According to Reuters, the civil case was brought by UBS Bancorp (USB) for three trusts. The trusts claim — April 18, 2016\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Bancorp-UBS Trial over $2.1B of Mortgage-Backed Securities Begins — Investor Lawyers Blog — April 18, 2016","description":"UBS (UBS) is on trial in Manhattan federal court. According to Reuters, the civil case was brought by UBS Bancorp (USB) for three trusts. 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