Mobile Version
Free Internet Press
  Uncensored News For Real People

FIP Year In Review

FIP Month in Review

FIP Archive Search

Multiple Discoveries from NASA's New Horizons Pluto Mission

R.I.P. William 'Bill' Herbert Kelder - Intellpuke

Gamers Donate 37,500 Pounds Of Food To Needy

Statement From The Whitehouse Regarding The Government Shutdown

An Open Response To 'Organizing for Action'

Bayou Corne: The Biggest Ongoing Disaster In The U.S. You Have Not Heard Of

Boston Mayor Hopes Feds 'Throw the Book' at Marathon Bombing Suspect

Boston Police Closing In On Suspects

2 Explosions At Boston Marathon. 2 Dead, Many Injured.

The Press vs Citizens Rights and Privacy - Act 3

CBS News - Year In Review 2012 - 366 Days: 2012 In Review

The Guardian - 2012 In Review: An Interactive Guide To The Year That Was

TruTV - The Biggest Conspiracy Theories of 2012

Colbert Nation: 2012: A Look Back

FIP Year In Review(s?)

Happy Holidays

Welcome To A New Era!

An Open Letter To United Health Care, Medcom, And The Medical Insurance Industry In General

Whitehouse Petition To Remove "Under God" and "In God" From Currency And The Pledge.

December 21, 2012

If Hillary Clinton Ran For President, She Would Probably Be The Best-prepared Candidate In American History

CIA Director David Petraeus Resigns After FBI Investigation Uncovers Affair With High-Profile Journalist

FIP Format Update

Thank you for voting.

Live Election Results

FIP In Hiatus

U.S.-Afghan Military Operations Suspended After Attacks

Iran Nuclear Chief Says IAEA Might Be Infiltrated By 'Terrorists And Saboteurs'

Romney Stands By Gaffe

$202 Million Deal - Deutsche Bank Settles Lawsuit With U.S.
2012-05-11 14:30:27 (224 weeks ago)
Posted By: Intellpuke

Deutsche Bank has settled a legal dispute with the U.S. Justice Department for $202 million as part of Josef Ackermann's attempts to clean house before his stint as CEO ends next month. U.S. officials had sued a Deutsche Bank subsidiary for knowingly violating mortgage regulations.

With just a couple of weeks to go before the era of CEO Josef Ackermann comes to an end at Deutsche Bank, Germany's largest financial institution is cleaning house. On Thursday, the bank reached a $202 million (€156 million) agreement with the U.S. Department of Justice to settle charges that Deutsche had engaged in fraud.

The deal puts an end to a civil lawsuit alleging that Deutsche Bank subsidiary MortgageIT breached federal housing regulations from 2007 to 2009. The subsidiary made hefty profits during that period, partially due to the resale of risky mortgages. The Thursday deal included an admission by Deutsche Bank that it was in a position to know about the regulation violations.

Deutsche Bank expressed relief on Thursday that the lawsuit has now been resolved. "This marks a significant step in resolving our mortgage-related exposures," the bank said in a statement.

(story continues below)

'Biggest Mistake'

The government lawsuit argued that bad mortgages made by MortgageIT cost the Department of Housing and Urban Development some $386 million to cover insurance claims made by the Federal Housing Administration. The costs stem from some 1,400 housing loans made by MortgageIT that have defaulted. More may be on the way.

Deutsche Bank bought MortgageIT for $430 million in 2007, on the eve of the bursting of the U.S. real estate bubble. The U.S. Department of Justice accused Deutsche Bank of knowing at the time of the risky and illegal practices engaged in by MortgageIT, practices which, U.S. officials said, only became worse following Deutsche's takeover of the company. According to the Financial Times Deutschland, Ackermann once called the purchase of MortgageIT the "biggest mistake of my time as CEO."

The settlement comes just weeks before Ackermann is to step down in favor of co-CEOs Anshu Jain and Jurgen Fitschen. The outgoing bank head has made an effort to find settlements on outstanding legal disputes prior to the leadership swap.

Intellpuke: This article is a compilation of reporting by Spiegel Online journalists and various news agencies; you can read it in context here:

Email To A Friend
Email this story to a friend:
Your Name:
Their Email:
Readers Comments
Add your own comment.
(Anonymous commenting now enabled.)

Creative Commons License
Free Internet Press is licensed under a Creative Commons Attribution 3.0 United States License. You may reuse or distribute original works on this site, with attribution per the above license.

Any mirrored or quoted materials may be copyright their respective authors, publications, or outlets, as shown on their publication, indicated by the link in the news story. Such works are used under the fair use doctrine of United States copyright law. Should any materials be found overused or objectionable to the copyright holder, notification should be sent to, and the work will be removed and replaced with such notification.

Please email with any questions.

Our Privacy Policy can be viewed at

XML/RSS/RDF Newsfeed Syndication XML/RSS/RDF Newsfeed Syndication:

XML/RSS/RDF Newsfeed Syndication XML News Sitemap