Deutsche Bank Dodges 2 Suits Alleging $1.3B MBS Fraud

Law360, New York (February 8, 2012, 12:45 PM EST) -- A New York federal judge on Monday threw out a pair of related complaints alleging Deutsche Bank AG sold $1.3 billion in toxic residential mortgage-backed securities while betting the underlying loans would fail.

U.S. District Judge Jed S. Rakoff granted Deutsche Bank’s motion to dismiss the lawsuits filed by Brussels-based lender Dexia SA and pension manager Teachers Insurance & Annuity Association. The plaintiffs alleged Deutsche Bank executives touted investments in its RMBS, made of pooled subprime mortgages, even as it secretly called the securities “pigs” and...
To view the full article, register now.