Shocker: U.S. sues former Deutsche Bank head subprime mortgage bond trader for crisis-era fraud

In what can only be regarded as a shocking development, the United States is suing the former head of subprime mortgage trading at Deutsche Bank over “systematically and intentionally” lying about the quality of subprime mortgages that backed nearly $1.5 billion in mortgage-backed securities in the run-up to the crisis.

The lawsuit marks one of only a handful of times the government has gone after an individual for crisis-era mortgage fraud at the systemic level; an untold amount of MBS traders from this era still walk free.

Read on.

4 responses to “Shocker: U.S. sues former Deutsche Bank head subprime mortgage bond trader for crisis-era fraud

  1. Reblogged this on Deadly Clear and commented:
    So, let’s get this straight, the dude is “systematically and intentionally” lying about the quality of the subprime loans… the same financial products that they sold to unsuspecting homeowners? So… chances are they were lying to homeowners too, yeah? Seems logical, doesn’t it?

  2. Wow! Did they dig that up with a soup spoon? How many years did it take to scoop up that shallow find? Since it was Fannie’s 1003 loan application software, and since Fannie relaxed the underwriting guidelines in its Expanda Approval program, it would seem that the opposition will be a doozie.

  3. Reblogged this on California freelance paralegal and commented:
    I am curious as to why they waited so long to go after this guy. If the evidence is as clear cut as it seems to be according to this article they should have pursued criminal charges.

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