Posts tagged "CDOs"
Why Deutsche Bank shareholders and counterparties should be paying attention to Retirement Board v. Bank of New York Mellon

Why Deutsche Bank shareholders and counterparties should be paying attention to Retirement Board v. Bank of New York Mellon

In a previous post we pointed out that with respect to the subprime mortgage crisis (and ensuing litigation), Deutsche Bank wore many hats: they owned a unit (MortgageIT) that originated subprime mortgages;  were responsible for assembling, packaging and underwriting scores of mortgage pools and selling the resulting residential mortgage backed securities (RMBS) and collateralized debt obligations (CDOs) to institutional investors; and they served as trustee for dozens of mortgage pools underwritten by other US and European banks. {read more}
Is trustee liability the real ticking time bomb not yet reflected on Deutsche’s balance sheet?

Is trustee liability the real ticking time bomb not yet reflected on Deutsche’s balance sheet?

In previous posts, we’ve asked the question: has Deutsche Bank set aside adequate reserves for mortgage-related litigation?  Most of the news flow about the bank’s potential mortgage related liabilities has centered around its role as either an arranger or underwriter of mortgage–backed securities or CDOs, as in the infamous Gemstone case highlighted by Senator Levin’s Permanent Subcommittee on Investigations, or as an originator of high-rate loans peddled to low-income home buyers (via the bank’s MortgageIT unit, for example.) {read more}
12 Questions for Deutsche Bank in 2012

12 Questions for Deutsche Bank in 2012

On February 2, 2012, Deutsche Bank CEO Josef Ackermann will discuss the bank’s preliminary results for FY 2011. Ackermann will leave the bank in 2012—a year in which the World Bank projects a recession in the EU, an anemic recovery in the US, and reduced growth in emerging markets.  Against the backdrop of a projected global economic slowdown, and in preparation for Dr. Ackermann’s comments, we have posed 12 questions that may continue to haunt Deutsche Bank in 2012. {read more}
The “Crap” Hits the Fan: Deutsche Settles with M&T Bank Over Gemstone 7

The “Crap” Hits the Fan: Deutsche Settles with M&T Bank Over Gemstone 7

Recently, Deutsche Bank settled with M&T Bank, a regional New York bank, over allegations that Deutsche had defrauded the smaller bank over investments in Mortgage Backed Securities, securitized in a CDO called Gemstone 7. You may recall that Gemstone 7 and Deutsche Bank itself received special scrutiny during a Senate Subcommittee investigation into the financial crisis released in April 2011. At the time, the Senate Subcommittee noted that Deutsche’s top CDO trader had called CDO investments “pigs” and “crap.” {read more}