U.S. sues Deutsche Bank in mortgage fraud case

[Viva_La_Revolution]

Source: Reuters

The U.S. government sued Deutsche Bank AG for more than $1 billion, accusing the German bank of defrauding it by repeatedly lying to obtain federal insurance guarantees on mortgage debt.

According to the complaint, Deutsche Bank and its MortgageIT Inc unit misled the government into believing their mortgages qualified for federal insurance, knowing they could make "substantial profits" when the loans were later sold.

In fact, the government said, the loan quality was so poor that nearly one in three mortgages defaulted, a percentage elevated by Deutsche Bank's "dysfunctional" quality control.

Read more: http://www.reuters.com/article/2011/05/03/us-deutschebank-mortgage-lawsuit-idUSTRE7423LY20110503

[rfranklin]

1. Okay, now how about Morgan Stanley, Citibank and Goldman Sachs?

Their excuse: "Everybody was doing it!"

[theoldman]

2. You can sue all you want, collecting is the hard part.

Lots of luck in suing a foreign company.

[naaman fletcher]

3. Where are the indictments?

This is fraud. The people who planned this should be charged with crimes.

[harvey007]

4. U.S. sues Deutsche Bank, alleging mortgage fraud

Source: Washington Post

U.S. prosecutors filed a civil suit Tuesday against Deutsche Bank, saying it repeatedly lied to the government and used shoddy lending standards that cost taxpayers hundreds of millions of dollars.

The government’s fraud allegations come as regulators and prosecutors face pressure to hold banks responsible for actions that led to the financial crisis. The suit, which seeks $1 billion in damages, says that Deutsche Bank lied about the quality of its lending practices in order to get access to the government’s massive mortgage insurance program.

Read more: http://www.washingtonpost.com/business/economy/us-sues-deutsche-bank-alleging-mortgage-fraud/2011/05/03/AFfym4iF_story.html

[rpannier]

5. Is B of A next?

I hope

[lonestarnot]

12. !

[aggiesal]

6. When are they going after US banks? n/t

[Historic NY]

9. Deutsche Bank is also HQ in Wall St. NY City

http://www.db.com/usa/

[aggiesal]

13. Their main HQ's are in Germany, ...

thus they are a German bank.

When will they start with US banks?

[patrice]

7. Wow.

:wow:

[Moostache]

8. Line them ALL up and get our money back NOW!!!

Bank of America
Citigroup
Goldman Sachs
Bank of England
Credit Suisse

If there is still a bank or a financial company smugly handing out over-sized bonuses and salaries, then hit them in the only place they can feel anything - their fucking wallets!

I want to see every last one them lined up and put in the figurative town square in stocks for a good old fashioned tar and feathering...but absent that wish I'll settle for striping them of all ill-gotten gains and profits from 2000 - 2008 as a good start and then we can negotiate the terms of their repayments from 2009 into the future.

Those miserable bastards should be afraid to leave their homes just as much as Bin Laden was - they should be cut off from civil society and outcast for their crimes against humanity as well as face manslaughter charges for the thousands of lives lost to depression and suicide in the years since their cooked economy and insider dealings and bailouts torpedoed the real economy and cost untold millions world-wide their jobs, their incomes, their dignity and, yes, in many sad cases their very lives.

I would LOVE to see Lloyd Blankfein's smug fucking face on the way into a nice federal pound-them-in-the-ass supermax prison. That might actually get me to tune into MSNBC again...

[Skink]

10. Goin after the terrorist's.

[primavera]

11. Omg, if that isn't the pot calling the kettle black!

And what action, pray tell, will we be conducting against BofA, Goldman Sachs, JP Morgan, AIG, Wells Fargo, and the rest of our corporate crooks? I mean, apart from giving them hundreds of billions of dollars and medals?