Bloomberg News

Deutsche Bank Sued Over $173 Million in Mortgage Bonds

December 27, 2012

Deutsche Bank Sued Over $173 Million in Mortgage Bonds

A pedestrian uses a mobile phone as he passes the offices of Deutsche Bank AG in London, U.K. Photographer: Simon Dawson/Bloomberg

Deutsche Bank AG (DBK) was sued in New York by Landesbank Baden-Wuerttemberg, which accuses the German bank of fraud in the sale of $173 million in mortgage-backed securities in 2007.

Deutsche Bank engaged in “egregious fraud,” selling securities that were riskier than promised and leading to losses, LBBW said in a complaint filed today in New York State Supreme Court.

LBBW, Germany’s biggest state-owned lender, said Deutsche Bank’s misconduct resulted in “astounding” rates of default on loans underlying the securities.

“We believe this suit is without merit and we intend to defend ourselves,” Amanda Williams, a spokeswoman for Frankfurt-based Deutsche Bank, said in an e-mail.

The case is Landesbank Baden-Wuerttemberg v. Deutsche Bank AG, 654543-2012, New York State Supreme Court (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus