ML-Implode News - UBS profit beats forecasts despite U.S. mortgage suit settlement

UBS said on Monday it had reached an agreement in principle with the Federal Housing Finance Agency (FHFA), prompting it to release its headline second-quarter results more than a week early, showing net profit had jumped by nearly two thirds.
The Zurich-based bank did not say how much the FHFA settlement would cost but it took a charge of about 865 million francs ($920 million) to cover litigation costs, provisions and writedowns related to the deal and a Swiss tax agreement with Britain.

The FHFA sued 18 banks, accusing them of misleading U.S. government-sponsored mortgage companies Fannie Mae and Freddie Mac about $200 billion in mortgage-backed bonds they purchased.

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UBS profit beats forecasts despite U.S. mortgage suit settlement