Deutsche Bank settles $1.9 billion suit over faulty mortgages
Newscast Media WASHINGTON—Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB)
announced today that it has reached an agreement to resolve its residential
mortgage-backed securities litigation with the Federal Housing Finance Agency
(FHFA) as conservator for Fannie Mae and Freddie Mac. As part of the agreement,
Deutsche Bank will pay $1.9 billion.
The FHFA made claims against 17 financial institutions in relation to residential
mortgage-backed securities, including Deutsche Bank.
The settlement agreement does not release Deutsche Bank from any claims relating
to LIBOR manipulation and does not include claims made against Deutsche Bank in two
other PLS lawsuits presently the subject of ongoing litigation: FHFA v. SC Americas,
Inc., et. al., and FHFA v. Countrywide Financial Corp., et. al. The other parties to
those lawsuits were not part of the negotiations with Deutsche Bank.
*Click here to read or download the entire $1.9 billion settlement.
Jürgen Fitschen and Anshu Jain, Co-Chief Executive Officers of Deutsche Bank, said:
“Today’s agreement marks another step in our efforts to resolve the Bank’s legacy
issues, and we intend to make further progress in this regard throughout 2014.”
They added: “We have exited the mortgage businesses that gave rise to these claims
and have further improved our controls.”