UBS AG has returned to court to block an effort by the Federal Housing Finance Agency (FHFA) to file a lawsuit related to losses incurred by Fannie Mae and Freddie Mac prior to the 2008 financial crash.
Bloomberg News reports that UBS is asking the U.S. Court of Appeals to overturn a ruling that enables the FHFA to pursue a lawsuit related to $6.4 billion in losses allegedly tied to UBS' sale of mortgage bonds to the government-sponsored enterprises. The Swiss bank's legal argument hinges on whether the 2008 legislation that established the FHFA also extended the timeline for the government to pursue legal claims.
Neither the FHFA nor UBS would comment on the Bloomberg report. In addition to UBS, the FHFA has also filed similar lawsuits against more than a dozen banks in relation to mortgage securities sold to Fannie Mae and Freddie Mac.