Posted on 08/24/2011 3:15:15 PM PDT by Olog-hai
Germany's Deutsche Bank was aware of fraud being committed by a US subsidiary that issued thousands of bad mortgages before the 2008 financial crisis, US prosecutors have alleged.
The US Department of Justice detailed the allegations in an amended lawsuit filed this week with a New York court, hitting back at Deutsche Bank's claim that it was not responsible for the actions of MortgageIT, a home finance business it took over in January 2007.
"Following the merger, MortgageIT continued its wrongful conduct. And, it did so with the knowledge and/or participation of Deutsche Bank," the department said.
The department is seeking more than $1 billion in damages from the German banking giant over alleged fraud committed by Mortgage IT, which was a major mortgage lender before the 2007-08 collapse of the US housing market. …
The rampant issuing of mortgages to unqualified borrowers unable to repay them fuelled a bubble in US home prices that popped in 2007-08, triggering the global financial crisis.
(Excerpt) Read more at thelocal.de ...
“Germany’s Deutsche Bank was aware of fraud being committed by a US subsidiary that issued thousands of bad mortgages before the 2008 financial crisis”
So were frank and dodd as it related to Fannie and Freddie. When will their feet be held to the fire?
“The rampant issuing of mortgages to unqualified borrowers unable to repay them fuelled a bubble in US home prices that popped in 2007-08, triggering the global financial crisis.”
That’s a hell of an over-simplification. Jumping over the Dhimmi trail; repeal of Glas Stiegel, GSE’s like Fannie and Freddie, the CRA, Rainbow/Push, ACORN and assorted community organizers THEN THE BANKS and all the dirty filthy grubby hands all over this is really galling.
“Deutsche Bank was aware of fraud”
Maybe they’re actually guilty of a crime, and maybe others. Without regrard to explicit lawbreaking I have no doubt that hundreds, maybe thousands of financial people and some politicians knew we were without doubt headed for a debt catastrophe.
They kept their mouths shut and probably got out of the markets before they crashed.
It’s a problem that boils down to human nature. The cure will be simplification and restriction of financial activities. Who can do that?
They were not the only ones doing this, and this is not the only crime these banks were committing.
The mortgage fraud at the bottom of the chain was driven by the voracious demand for MBS at the top of the chain. The fraud committed in making those loans is relatively small compared to the fraud committed in reselling them to unsuspecting investors.
Deutsche Bank is dirty as all git out! I’ve had dealings with them over a house in the water district I’m the operator for. They deserve to be raked over the coals!
But,,, banks were forced to give mortgages to unqualified buyers. They pretty much had to package those things and pass them on. But,,, Deutsche Bank? Guilty!
file this under captain obvious.
every court case has been dedicated to concealing the fraud.
“But,,, banks were forced to give mortgages to unqualified buyers. They pretty much had to package those things and pass them on. But,,, Deutsche Bank? Guilty!”
My point was, of course, they couldn’t have become guilty without an awful lot of Dhimm-ocrat preparation.
“My point was, of course, they couldn’t have become guilty without an awful lot of Dhimm-ocrat preparation.”
Oh! Abdo-lutely! But D-Bank are scum! Three or four fake mortgages on this house. They got paid fees for every one they arranged. The last one was just crazy!
“And individuals actually signed every mortgage and agreed to the terms.”
When banks are robbed and hostages shot, the stupid hostages went into the bank willingly, thinking it was safe, the morons.
Cripes.
There are corrupt, there are stupid and there are Dems...who are both. Let’s follow the trail back to the source and stop the BS.
banks would hold mortgages for years before selling them.
they were not bundled.
they were not put into MERS to avoid recording fees.
promissory notes were not destroyed on purpose
the loans may have been bad but what deutsche bank did was the same as knowingly passing on counterfit money
“Deutsche Bank was aware of fraud”
Maybe they’re actually guilty of a crime, and maybe others. Without regrard to explicit lawbreaking I have no doubt that hundreds, maybe thousands of financial people and some politicians knew we were without doubt headed for a debt catastrophe.
They kept their mouths shut and probably got out of the markets before they crashed.
It’s a problem that boils down to human nature. The cure will be simplification and restriction of financial activities. Who can do that?
“And individuals actually signed every mortgage and agreed to the terms. “
Uhuh - and who signed off on the resulting a$$paper?
QE1, QE2....
When the teats run dry, the cow gets eaten.
Look up Limited Purpose Banking.
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