Deutsche Bank has reached a $95 million settlement with Maryland stemming from the housing crisis that will funnel $80 million to provide new mortgages or mortgage relief to eligible consumers as well as help finance affordable housing.
The settlement resolves civil claims that the bank misled investors. The bank did not lend directly to consumers but instead packaged and sold mortgages into complex securities known as “residential mortgage-backed securities and “collateralized debt obligations.”
The settlement represents the state’s negotiated share of a $7.2 billion settlement Deutsche Bank reached with U.S. Department of Justice in January that included $4.1 billion for consumers.
It’s the largest such agreement reached so far by a state related to Deutsche Bank’s conduct during the financial crisis, Maryland Attorney General Brian E. Frosh said Thursday.
Click here to read the rest of the article written by Lorraine Mirabella over at the Baltimore Sun