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...
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