Dexia Sues Deutsche Bank Over $1B In MBS

Law360, New York (July 14, 2011, 6:11 PM EDT) -- Dexia SA, a European lender to the public sector, sued Deutsche Bank AG on Wednesday in New York for fraud relating to its role in pushing low-quality mortgage-backed securities worth more than $1 billion.

The Brussels-based bank, which received €6.4 billion ($9 billion) in aid from Belgium, France and Luxembourg in 2008, accused Deutsche Bank of playing a “ubiquitous role” in creating and securitizing loans it privately disparaged as “pigs” and “crap” while presenting them to institutions such as Dexia as high-quality investments.

“Unaware that Deutsche...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.