Deutsche Bank Sued Over Risky MBS Sales

Law360, New York (September 7, 2011, 10:14 PM EDT) -- A Netherlands-based pension fund on Wednesday filed a suit in New York against Deutsche Bank AG and several of its units and officers for selling mortgage-backed securities that were far riskier than initially represented.

Stichting Pensioenfonds ABP claims Deutsche Bank made false and misleading statements in selling mortgage-backed securities that the fund bought in 2006 and 2007.

The securities ended up being backed with loans worth less than represented and given to borrowers lacking enough credit, according to the suit. Deutsche Bank is also accused of...
To view the full article, register now.