Deutsche Bank Unit Sued Over $183 Million in Securities
A Deutsche Bank AG (DB) unit was sued by a trustee for mortgage-bond investors over $183 million in defective loans backing the securities.
DB Structured Products breached promises about the quality of the loans that were pooled and packaged into securities, trustee HSBC Bank said in a filing today in New York State Supreme Court in Manhattan.
A review of loans indicate problems “may be pervasive and systemic across the loan portfolio,” HSBC said. The bank seeks an order requiring DB Structured Products to repurchase loans, according to the filing.
Duncan King, a spokesman for Frankfurt-based Deutsche Bank, said the bank was reviewing the filing and declined to comment.
The case is Ace Securities Corp. Home Equity Loan Trust, Series 2006-HE4 v. DB Structured Products Inc., 653394-2012, New York State Supreme Court (Manhattan).
To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net
To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net
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