In its largest-ever settlement with a state, the bank will pay millions to Maryland for misleading mortgage-bond investors
Deutsche Bank will fork over $95 million to settle claims that it misled investors about the quality of mortgage-backed securities prior to the financial crisis.
The German banking giant reached the settlement with the state of Maryland. The bank will pay $15 million to state and local governments and provide $80 million in consumer relief, according to Maryland Attorney General Brian E. Frosh. The settlement is the largest reached by a state4 for Deutsche Bank’s mortgage bond-related conduct during the financial crisis.
As part of the settlement, Deutsche Bank acknowledged that it misled investors about the loans it securitized, according to the AG’s office.
“Deutsche Bank has acknowledged that it deceived investors about the quality of the residential mortgages backing their complex securities,” Frosh said. “Its conduct, and that of other investment banks, fueled the financial crisis and aided unfair and predatory lending practices. This settlement recoups losses that Maryland suffered through investments in Deutsche Bank securities and also ensures that Maryland consumers will receive relief from the Department of Justice settlement entered into during the Obama administration.”
The Maryland settlement is separate from but related to the $7.2 billion settlement Deutsche Bank reached with the Department of Justice in January, according to a HousingWire report.
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Bank must face suit over $1 billion mortgage-bond loss
Deutsche Bank hit with $7.2 billion fine in mortgage settlement
The German banking giant reached the settlement with the state of Maryland. The bank will pay $15 million to state and local governments and provide $80 million in consumer relief, according to Maryland Attorney General Brian E. Frosh. The settlement is the largest reached by a state4 for Deutsche Bank’s mortgage bond-related conduct during the financial crisis.
As part of the settlement, Deutsche Bank acknowledged that it misled investors about the loans it securitized, according to the AG’s office.
“Deutsche Bank has acknowledged that it deceived investors about the quality of the residential mortgages backing their complex securities,” Frosh said. “Its conduct, and that of other investment banks, fueled the financial crisis and aided unfair and predatory lending practices. This settlement recoups losses that Maryland suffered through investments in Deutsche Bank securities and also ensures that Maryland consumers will receive relief from the Department of Justice settlement entered into during the Obama administration.”
The Maryland settlement is separate from but related to the $7.2 billion settlement Deutsche Bank reached with the Department of Justice in January, according to a HousingWire report.
Related stories:
Bank must face suit over $1 billion mortgage-bond loss
Deutsche Bank hit with $7.2 billion fine in mortgage settlement
