UBS Americas Inc. has agreed to pay $885 million to settle claims it misrepresented the quality of mortgage-backed securities it sold during the housing bubble.
The suit is one of 18 filed by the Federal Housing Finance Agency (FHFA) on behalf of Fannie Mae and Freddie Mac.
The Swiss bank, which employs more than 2,000 people in Stamford, will pay $415 million to Fannie Mae and $470 million to Freddie Mac to resolve the claims. In the agreement, the bank did not admit to any wrongdoing.
The settlement is expected to provide “greater clarity and certainty in the marketplace,” said FHFA Acting Director Edward J. DeMaro in a statement.
Of the entities charged with allegedly misrepresenting securities leading up to the financial collapse, UBS is the third to settle. Previously,  Citigroup and General Electric settled for an unknown amount.
