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$1.9 Billion to Settle Deutsche Bank Lawsuit
In efforts between Deutsche Bank and the U.S. Federal Housing Finance Agency over mortgage-backed securities, Deutsche Bank, Germany’s biggest bank, will pay 1.4 billion euros which is $1.9 billion to settle a lawsuit. This lawsuit is Deutsche Banks’s single largest mortgage litigation case.
The lawsuit lists allegations that between 2005 and 2007 the Deutsche Bank did not properly disclose information about residential mortgage-backed securities they sold to U.S. taxpayer-owned mortgage financiers Fannie Mae and Freddie Mac.
According to Yahoo Legal News, The U.S. Federal Housing Finance Agency has reached settlements with UBS and with JP Morgan Chase & Co Inc. The German bank also said it was working to resolve the host of other legal and regulatory problems.
Earlier in the month, the European Commission smacked Deutsche Bank with a 725 million euro penalty in an investigation into the rigging of benchmark inter-bank interest rates. U.S. and UK regulators have yet to fine Deutsche in the case. The U.S. Federal Housing Finance Agency had already sued 17 banks in the case.
The Deutsche bank, based in Germany, is the sixth institution to reach a settlement with the Federal Housing Finance Agency. The New York Times reports that, The Deutsche Bank said in a news release that it had largely set aside money in its legal reserves to pay for the settlement, which it said “resolves its single largest mortgage-related litigation issue.” The American Banker reported that Deutsche Bank’s shares rose 0.8 percent to 33.80 euros at 2:33 p.m. in Frankfurt, valuing the company at 34.5 billion euros ($1 = 0.7316 euros).
Image Credit: www.news.yahoo.com$1.9 Billion to Settle Deutsche Bank Lawsuit by Jaan