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Deutsche Bank wages legal fight in the US

Posted by mortgage 89 days ago (Editorial)
Three years ago, the real estate bubble burst in the United States. While the search for those to blame continues, Deutsche Bank is being targeted by prosecutors - but may escape the worst.
Three years ago, the real estate bubble burst in the United States. While the search for those to blame continues, Deutsche Bank is being targeted by prosecutors - but may escape the worst.
Former Bear Stearns Cos. (2942331Q) hedge-fund managers Ralph Cioffi and Matthew Tannin , acquitted in 2009 of criminal charges they misled investors, agreed to pay $1.05 million to settle a related civil case brought by the U.S. Securities and Exchange Commission.
Meanwhile, the US Securities and Exchange Commission is also investigating Deutsche Bank , SPIEGEL reports. According to financial regulatory sources, the bank launched one CDO transaction called "START" in which it allegedly allowed the hedge fund of US speculator John Paulson to choose junk mortgage securities against which he could speculate -- without the other investors knowing abo
The Securities and Exchange Commission investigates a Wall Street behemoth over claims that it assembled and sold a package of subprime mortgage-backed securities at the behest of hedge fund king John Paulson without telling other investors that Paulson planned to short it.
At a time when mortgage-backed securities were imploding and customers were fleeing the market, a junior analyst at Deutsche Bank AG protested when he was asked to alter the numbers in a spreadsheet to make a Deutsche security look less risky to ratings agencies, according to a person with knowledge of the matter.
WASHINGTON (AP) -- Citigroup and Deutsche Bank are agreeing to pay a total of $165.5 million to settle federal regulators' claims that they misled five failed credit unions about the risk of securities tied to mortgages.
Deutsche Bank AG (DBK) , Germany ?s biggest bank, was sued by Loreley Financing over $440 million worth of collateralized debt obligations purchased from 2005 to 2007.

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