UBS urged a U.S. judge on Friday to reject claims that it should be held liable for $2 billion (£1.4 billion) in losses that investors incurred on mortgage-backed securities issued before the collapse of the U.S. housing market.
Reuters reports that lawyers for UBS made their closing arguments in the non-jury trial in Manhattan federal court in a lawsuit being pursued by U.S. Bancorp on behalf of three trusts established for mortgage-backed securities.
Sean Baldwin, the trusts' lawyer, said UBS turned a blind eye to defects in the mortgages it acquired and packaged into bonds to be sold to investors, relying on vendors hired to do due diligence on the loans whom it considered "negligent or lazy."
"It was a business decision, but it should be held accountable for that business decision," he said.
But Robert Fumerton, a lawyer for UBS, said while the trusts contended thousands of loans were defective under the governing contracts, they had failed to establish those defects were material.
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