Feds sue Deutsche Bank for mortgage fraud

The government says the German bank and one of its subsidiaries “illegally obtained government insurance for substandard mortgages during the U.S. housing boom” and that as a result, many of the loans went into default, costing taxpayers at least $386 million to date. The suit, brought by Preet Bharara, the U.S. Attorney for the Southern District of New York, seeks $1 billion in damages. Deutsche Bank says it will “vigorously” defend the case.

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