Ex-Deutsche Bank Trader Sued by U.S. Over Crisis-Era Bonds
- Mangione allegedly misled investors in $1.4 billion offerings
- Deutsche Bank previously settled U.S. case for $7.2 billion
This article is for subscribers only.
A former Deutsche Bank AG head of subprime trading defrauded investors in mortgage-backed securities sold before the financial crisis, the U.S. said in a civil lawsuit filed Monday in Brooklyn.
Paul Mangione misled investors about the quality of loans underlying $1.4 billion in such securities, resulting in hundreds of millions of dollars in losses, the U.S. said.