UBS has agreed to pay $300 million to settle a long-standing case related to the mis-selling of residential mortgage-backed securities (RMBS) by Credit Suisse in the United States, drawing a line under one of the most significant legal issues inherited after last year’s emergency takeover.

The Swiss bank announced on Monday that Credit Suisse Securities (USA) LLC had entered into an agreement with the US Department of Justice to resolve all outstanding consumer relief obligations under a 2017 settlement concerning its RMBS business. “On 1 August 2025, Credit Suisse Securities (USA) LLC entered into an agreement with the DOJ to resolve all of Credit Suisse’s outstanding Consumer Relief Obligations under the 2017 settlement by paying $300 million,” UBS said in a statement.

The settlement relates to the period leading up to the 2008 financial crisis, when lenders were accused of misleading investors about the quality of the residential loans underpinning mortgage-backed securities. As mortgage payments declined, the value of these assets dropped sharply, resulting in significant losses for investors.

UBS, which acquired Credit Suisse in 2023 as part of an emergency rescue, has been working through a series of legacy legal issues. In May, UBS agreed to pay $511 million to resolve a separate investigation into how Credit Suisse helped wealthy Americans hide assets from authorities. The bank noted that the new agreement would allow it to “recognise a credit in its third quarter results in its non-core unit from the release of the contingent liability”.

“With this agreement, UBS has resolved another of Credit Suisse’s legacy issues, in line with its intention to resolve legacy matters at pace in a fair and balanced way, and in the best interest of all its stakeholders,” UBS said.

The 2017 settlement originally required Credit Suisse to pay $5.7 billion to US authorities. In 2022, Credit Suisse paid $495 million to settle a related case in New Jersey that alleged the bank had misled investors and engaged in fraud in connection with the offer and sale of RMBS.

The $300 million settlement marks another step in UBS’s strategy to address and close out the legal risks associated with its acquisition of Credit Suisse.

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