ZURICH — Swiss banking giant UBS said today it agreed to pay US$300 million (RM1.3 billion) in a deal with the US Department of Justice to settle a subprime crisis case it inherited from Credit Suisse.

Credit Suisse, which had reached a settlement with the DOJ in 2017, was taken over by UBS in 2023 following a series of scandals that led to the bank’s collapse.

UBS said in a statement it was “pleased” to announce that it had reached an agreement with the DOJ to resolve the “legacy matter” related to Credit Suisse’s mortgage-backed securities business.

“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,” Switzerland’s biggest bank said.

Credit Suisse and other major banks sold mortgage-backed securities that were at the heart of the 2008 financial crisis.