Deutsche Bank Understated Risk Of $512M In RMBS: Suit

Law360, New York (February 15, 2012, 6:59 PM EST) -- Deutsche Bank AG and its units were sued Tuesday by Phoenix Light SF Ltd. for allegedly overstating the value of $512 million in residential mortgage-backed securities they sold the company despite purportedly knowing their risks.

In a summons filed in New York state court, Phoenix Light claims that Deutsche Bank had knowingly misrepresented the quality of the mortgage loans underlying the securities in data it had provided including loan-to-value ratios, in which Deutsche bank allegedly overrepresented the value behind the properties, and the percentage of owner-occupied...
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