Posts tagged "Levin Report"
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}
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}
Did Deutsche Bank Mislead Rating Agencies?

Did Deutsche Bank Mislead Rating Agencies?

According to a recent report by ProPublica, in 2007, a junior analyst at Deutsche Bank, Ajit Jain, was asked to manipulate a spreadsheet “to make a Deutsche security look less risky to ratings agency.” {read more}