FDIC, Deutsche Bank $150M Settlement Stemmed From About a Decade of Litigation

The FDIC alleged that banks made untrue, misleading statements about the quality of the mortgage loans in order to sell billions worth of residential mortgage-backed securities to Guaranty Bank, which failed in 2009.

December 12, 2019 | Law.com It’s been more than a decade since the 2008 financial crisis and housing market crash, yet one piece of resulting litigation over mortgage-backed securities only recently concluded with a $150 million settlement.

The Federal Deposit Insurance Corp., which was acting as a receiver for the defunct Guaranty Bank and Deutsche Bank Securities Inc., entered into the settlement to resolve a claim under the Texas Securities Act. The FDIC alleged the banks made untrue, misleading statements about the quality of the mortgage loans in order to sell billions worth of residential mortgage-backed securities to Guaranty Bank, which failed in 2009. Read more here.