Deutsche Bank to Face US Lawsuit for $3.1 billion

Bank to answer for allegations of toxic residential mortgage backed securities

By Jeff Sorg, OnlineEd Blog

(February 4, 2016) -A federal judge ruled on yesterday that Deutsche Bank must face a US lawsuit seeking to hold it liable for causing $3.1 billion  of investor losses by failing to properly monitor 10 trusts backed by toxic residential mortgages.

“Plaintiff’s allegations of high default rates, large economic losses, and widespread investigation into RMBS securitization allow the court to draw the reasonable inference that defendant had actual knowledge” of defective loans, the judge wrote.

The case is Royal Park Investments SA/NV v. Deutsche Bank National Trust Co, US District Court, Southern District of New York, No. 14-04394.

[Source: Reuters]

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The case is Royal Park Investments SA/NV v. Deutsche Bank National Trust Co, US District Court, Southern District of New York, No. 14-04394.

Read more: http://www.afr.com/business/banking-and-finance/financial-services/deutsche-bank-in-us31b-us-lawsuit-over-toxic-mortgage-losses-in-the-gfc-20160204-gmldtw#ixzz3zDrbf02w
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Jeff Sorg

About the Author

Jeff Sorg is a co-founder of OnlineEd®, a Web-based vocational school founded in 1997 where he also serves as Corporate Secretary, Chief Operating Officer, and School Director. Sorg holds vocational instructor licenses in Oregon, Washington, California, and Nevada and has authored numerous pre-licensing and continuing education courses. Sorg was awarded the International Distance Education Certification Center's CDEi Designation for distance education in 2008. OnlineEd® provides real estate, mortgage broker, insurance, and contractor pre-license, post-license, continuing education, career enhancement, and professional development and designation courses over the Internet.