UBS AG agreed to pay $230 million to resolve a New York state probe into its marketing of residential mortgage-backed securities before the financial crisis, boosting the state's recoveries in the investigation to almost $4 billion.
The settlement includes $189 million in consumer relief and $41 million in cash for the state, Attorney General Eric Schneiderman said Wednesday in a statement. He said the bank ignored the advice of its own diligence vendors in packaging and selling loans that didn't conform to its underwriting guidelines.
Royal Bank of Scotland Group Plc agreed earlier this month to pay $500 million to settle a parallel investigation by Schneiderman, moving the government-owned lender a step closer to resolving a series of costly U.S. investigations.
