Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Reports: Deutsche Bank To Pay $32.5 Mln To Settle Mortgage Suit

RELATED NEWS
Trade DB now with 

German lender Deutsche Bank AG (DB: Quote) has agreed to pay $32.5 million to investors to settle a mortgage lawsuit, according to media reports on Monday.

The investors that sued, including lead plaintiff Massachusetts Bricklayers and Masons Trust Funds, have reportedly filed a motion on Monday for preliminary approval of the settlement in federal court in Central Islip, New York.

"The proposed settlement will provide a substantial monetary benefit to the settlement class," lawyers for the plaintiffs reportedly wrote in the filing. The deal must be approved by U.S. District Judge Leonard Wexler.

The investors had alleged they were misled about the quality of mortgage loans sold to them in 2006 as highly rated securities. They filed a lawsuit against Deutsche Bank in 2008.

The settlement is among a handful with major banks to resolve claims that they misled investors into buying risky mortgage-backed securities amid the housing boom.

In December, Bank of America Corp.'s (BAC: Quote) Merrill Lynch unit said it would pay $315 million to resolve a lawsuit brought by investors in 18 mortgage-backed securities trusts.

Wells Fargo & Co. (WFC: Quote) agreed to pay $125 million to investors to settle litigation against the company, two weeks before a scheduled hearing in July.

In early February, the U.S. federal government and attorneys general from forty-nine states reached a landmark $25 billion settlement with the nation's five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses, the U.S. Department of Justice said.

The mortgage servicers who reached the settlement are Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM), Wells Fargo & Co., Citigroup Inc. (C), and Ally Financial Inc. (ALLY).

DB closed Monday's trading at $52.16, up $1.23 or 2.42 percent on a volume of 1.08 million shares.

Register
To receive FREE breaking news email alerts for Deutsche Bank AG and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The U.K. economy grew at a slower pace in the third quarter in the face of rising uncertainty stemming from global economic conditions, preliminary estimates from the Office for National Statistics Office showed Friday. Gross domestic product climbed 0.7 percent from the second quarter, when it grew 0.9 percent. German consumer climate is set to improve slightly in November, ending the downward trend, as income expectations among households strengthened on the back of the strong labor market situation, survey data revealed Friday.The forward-looking consumer confidence index rose slightly to 8.5 in November from 8.4 in October. Software giant Microsoft Corp. said Thursday after the markets closed that its first quarter profit fell 13% from last year, hurt mainly by integration and restructuring costs even as revenue surged 25% thanks to strong sales of its gadgets and cloud-based products. However, the company's quarterly earnings per share came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.