Deutsche Bank AG knew in 2006 that a mortgage company it was preparing to buy lied to the U.S. government about its mortgages, yet went ahead with the purchase and should be held financially responsible, the Justice Department said on Monday.
According to the department’s amended $1 billion complaint filed Monday evening with the U.S. District Court in Manhattan, Deutsche Bank was “on notice of and expressly assumed responsibility” for wrongdoing at MortgageIT Inc, which it bought in 2007.
Certainly everyone knows to read the fine print by now…
ProPUBLICA-
A few months ago, Bank of America offered Sergio Cortez of Staten Island, N.Y., the help he desperately needed to stay in his home: a break on his mortgage. Like millions of others, he was facing foreclosure. But there was a catch buried in the fine print. Cortez had to waive any possibility of ever suing the bank for anything relating to the loan.
Cortez isn’t alone. While regulators have banned the practice, some banks and others who handle mortgages have still been forcing homeowners into a corner: You want a chance at saving your home? Then you’ll have to waive your rights.
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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