US mortgage litigation claim settled by UBS

<p>UBS has announced it has settled a mortgage litigation claim in the US.</p>

Swiss bank UBS has reached an agreement with the Federal Housing Finance Agency over claims it mis-sold mortgage investments in the US between 2004 and 2007.

UBS revealed that its second quarter net profits for shareholders are expected to total 690 million Swiss francs (£480 million) and the bank has also set aside a total of 865 million francs in the quarter to cover litigation.

In a statement, UBS announced 100 million francs of that total is related to a deal with the UK authorities, which means that the bank is going to disclose the account details of British tax evaders and hand back unpaid taxes.

"The full cost of the settlement is covered by litigation provisions established by UBS during the second quarter of 2013 and in prior periods," said the bank.

UBS has seen its share price rise in the last couple of months, with a sharp rise in the value of its stocks in the last few weeks.

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