Deutsche Bank Faces U.S. Mortgage Securities Suit
Deutsche Bank (DBKGn.DE) faces a U.S. class-action lawsuit over mortgage-related securities it helped arrange, Germany’s biggest lender said in its first-quarter report.
April 27, 2010
FRANKFURT (Reuters) – Deutsche Bank faces a U.S. class-action lawsuit over mortgage-related securities it helped arrange, Germany’s biggest lender said in its first-quarter report.
But it tried to distance itself from a whirlwind sweeping Wall Street rival Goldman Sachs by revealing it had not been informed by the U.S. Securities and Exchange Commission (SEC) of any imminent charges.
It said the Federal Home Loan Bank of San Francisco had filed suit regarding the role a number of financial institutions, including Deutsche Bank affiliates, had played as issuer and underwriter of certain mortgage pass-through certificates purchased by the San Francisco-based bank.
“In addition, certain affiliates of Deutsche Bank, including DBSI, have been named in a putative class action pending in the United States District Court for the Eastern District of New York regarding their roles as issuer and underwriter of certain mortgage pass-through securities,” it said.
“On April 5, 2010, the Court granted in part and denied in part Deutsche Bank’s motion to dismiss this complaint. Each of the civil litigations is otherwise in its early stages.”
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