Deutsche Bank must face U.S. lawsuit over $3.1 billion mortgage loss: judge
This is a reuters.com article.
Deutsche Bank AG must face a U.S. 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, a federal judge ruled on Wednesday.
U.S. District Judge Alison Nathan in Manhattan said Belgium’s Royal Park Investments SA/NV may pursue claims that the trustee Deutsche Bank National Trust Co ignored “widespread” deficiencies in how the underlying loans were underwritten and serviced, and failed to require that bad loans be repurchased.
Royal Park, which is seeking class-action status on behalf of other investors, said Deutsche Bank breached its fiduciary duties in part out of fear it might lose business or prompt retaliation over the German bank’s own problem loans.
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