Banking giant to pay $1.6bn to settle FHFA stoush

by MPA23 Dec 2013
Deutsche Bank will shell out more than $1.63bn to settle claims brought against it for MBS sales to Fannie Mae and Freddie Mac.

The FHFA has announced it reached a settlement with the European banking giant over alleged violations of federal and state securities laws over Deutsche Bank's MBS sales to Fannie Mae and Freddie Mac between 2005 and 2007. The settlement doesn't release Deutsche Bank from claims relating to LIBOR manipulation, currently being pursued in two other FHFA lawsuits.

"Today's agreement marks another step in our efforts to resolve the bank's legacy issues, and we intend to make further progress in this regard throughout 2014," Co-CEOs Juergen Fitschen and Anshu Jain said in a statement.

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