Deutsche Bank Hit With Fraud Suit Over $535M RMBS Sale

Law360, New York (August 5, 2013, 9:20 PM EDT) -- An investment entity with ties to the Belgian government sued Deutsche Bank AG in New York state court Monday alleging the bank fraudulently induced it to buy more than $535 million worth of residential mortgage-backed securities that are now “essentially worthless investments.”

Royal Park Investments SA/NV said Deutsche Bank failed to disclose in offering documents that, among other things, by the time it sold RPI the last certificate in early 2007, it had taken a $4 billion to $5 billion short position in the MBS market, “essentially...
To view the full article, register now.