The Securities and Exchange Commission announced the settlement Tuesday with UBS. The SEC said the bank failed to disclose that it had kept $23.6 million in payments it received as it acquired collateral for the mortgage-backed securities. The agency said the money should have gone into the securities for the benefit of investors.
UBS agreed to pay a $5.7 million penalty. In addition, it agreed to return the $23.6 million and a $10.8 million fee it received and disclosed for putting together the 2007 transaction. It will also pay $9.7 million in interest.
UBS neither admitted nor denied wrongdoing.Suggest a correction