Deutsche Bank and BayernLB settle 'pig' lawsuit

Deutsche Bank - External

Deutsche Bank and German state-backed lender BayernLB have agreed to settle an $810m lawsuit in connection with residential mortgage-backed securities, or RMBS, that Deutsche sold to BayernLB.

'We have reached a basic agreement. The final settlement has yet to be agreed,' a BayernLB spokesman said in a statement.

Reuters reports that in the suit, originally filed in a New York court in 2012, BayernLB asserted that Deutsche Bank sold the securities to external clients while secretly criticizing them within the bank and ultimately profiting from their failure.

'Deutsche Bank originated, purchased, financed and securitised exceptionally high-risk loans into these RMBS, all while internally disparaging the poor quality of these loans and the RMBS they backed as 'pigs' and 'crap', according to the 2012 court filing from BayernLB.

Hit the link below to access the complete Reuters article:

Deutsche Bank, BayernLB agree to settle $810 million U.S. suit

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