Deutsche Bank Pushes To Kill MBS Fraud Suits

Law360, New York (November 23, 2011, 6:20 PM EST) -- Deutsche Bank AG on Wednesday pressed a federal judge to toss lawsuits that claim it secretly bundled masses of junk loans into $1.3 billion in troubled residential mortgage-backed securities it sold, arguing the securities' two buyers should have been more diligent.

Brussels-based lender Dexia SA and pension manager Teachers Insurance & Annuity Association claim in related fraud suits that Deutsche Bank executives privately called its RMBS, made of pooled subprime mortgages, “pigs” and “crap,” even as it touted them as high-quality investments.

But the two investors,...
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