Deutsche Bank will pay $1.9 billion to settle claims that it didn’t provide sufficient information about mortgage-backed securities it sold to Fannie Mae and Freddie Mac.
The agreement struck with the Federal Housing Finance Agency covers the period of 2005 to 2007 and resolves the bank’s largest mortgage-related litigation case, the bank said in a statement on its website today.
Funds for the settlement would not require “material additional reserves” be tapped, according to the statement, seen by Bloomberg News.
Banks will likely pay a total sum of $27 billion to settle lawsuits with the FHFA, according to data compiled by Bloomberg News. [Bloomberg News] – Hiten Samtani