Deutsche Bank Won’t Face Mortgage-Bond Fraud Suits, Judge Rules
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Deutsche Bank AG won dismissal of two lawsuits in which investors in residential mortgage-backed securities accused the bank of selling them securitized loans it internally disparaged as “crap.”
U.S. District Judge Jed Rakoff in Manhattan, in an order filed yesterday, dismissed two separate lawsuits by Brussels-based Dexia SA and Teachers Insurance and Annuity Association of America. The investors had “in certain key respects” failed to provide sufficient particular facts to support their fraud allegations, the judge said.