The US authorities claim EUR 12.5 bln from Deutsche Bank for transactions with subprime mortgage loans, which allegedly triggered the Crisis of 2008. The bank intends to haggle, Deutsche Welle reports.
The US authorities claim from the largest financial conglomerate of Germany – Deutsche Bank –USD 14 bln (EUR 12.5 bln) as the compensation for dubious operations with mortgage loans, triggering, according to US authorities, the collapse of US real estate market in 2008. The US party confirmed the information on claims on Thursday, September 15, Deutsche Bank press-office reports.
The specified amount is the largest among those, which USA claimed as the compensation from foreign banks, AFP agency reports. In addition, in the relevant statement Deutsche Bank already emphasized that it intends to conduct negotiations on reduction of the compensation amount to the minimum, as it came off with “the same financial institutions, which agreed on repayment of much less amounts”.
Mortgage crisis
Back in 2011, Federal Housing Finance Agency (FHFA), which exercises the supervision over transactions on the real estate market, accused the whole range of banks of the fact that during the mortgage boom period in the USA they provided false information on the solvency of borrowers, as the result of which its mortgage companies Fannie Mae and Freddie Mac incurred losses, amounting to more than USD 30 bln, which consequently US taxpayers had to compensate.
Except for Deutsche Bank, FHFA filed legal claims against Bank of America, JP Morgan Chase and Goldman Sachs. The FHFA agency filed the lawsuit against the largest Swiss bank UBS, claiming compensation, amounting to USD 4.5 bln.
