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US accuses Deutsche Bank of lying
http://www.x404.co.uk/forum/viewtopic.php?f=19&t=13547		 Page 1 of 1
Author:  pcernie [ Wed May 04, 2011 12:33 am ]
Post subject:  US accuses Deutsche Bank of lying
http://www.bbc.co.uk/news/business-13273533

I really don't like the tone of Beeb articles these days, no good will come of it :evil:
Author:  Amnesia10 [ Wed May 04, 2011 1:05 am ]
Post subject:  Re: US accuses Deutsche Bank of lying
When you consider how rotten the US mortgage market had become I suspect that Deutsche Bank will lose, especially since prosecutors want to win big cases like this. Even if it is a subsidiary.
Author:  adidan [ Wed May 04, 2011 8:13 am ]
Post subject:  Re: US accuses Deutsche Bank of lying
LMAO, the US complaining about another Country's banking activities.

:lol:
Author:  Amnesia10 [ Wed May 04, 2011 12:11 pm ]
Post subject:  Re: US accuses Deutsche Bank of lying
adidan wrote:
LMAO, the US complaining about another Country's banking activities.

:lol:

Not quite as bad as that. They bought a business which had committed all these crimes. If I were Deutsche bank I would look as suing the investment bank that advised them for all those extra costs.

Quote:
The complaint says Deutsche's MortgageIT subsidiary lied in order to get Federal Housing Administration (FHA) insurance for its loans.

FHA rules say lenders must make sure the borrower will be able to repay the loan, but the Justice Department claims Deutsche did not do so.

A Deutsche spokesperson described the claims as "unreasonable and unfair".

"We intend to defend against the action vigorously," she added.

The lawsuit is one of the first targeting mortgage lenders under the federal False Claims Act.

The government says that between 1999 and 2009, MortgageIT endorsed more than 39,000 mortgages for FHA insurance.

It says that the lender had powerful incentives to generate as many FHA-insured loans as it could so that it could then sell them on to investors.

Deutsche Bank bought MortgageIT for $430m in 2007.

The government said it had paid out more than $386m in FHA insurance claims and related costs.
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