Deutsche Bank was accused of organizing a mortgage scam

U.S. federal authorities have sent a lawsuit against one of the largest European banks - Deutsche Bank - and its mortgage unit. Bankers are accused of "reckless forms of credit and providing false information about selling in the U.S. of its mortgage products. After the collapse of the mortgage market during the crisis, the authorities had to pay for these products insurance worth more than $ 380 million government now intends to seek compensation from the German bank of the losses in triple the amount. Wrote on Wednesday, May 4 edition of Kommersant. As stated in the statement issued to the Court in Manhattan lawsuit the U.S. government, which in this case is the prosecutor of the Southern District of New York Prete Bharara, Deutsche Bank and its U.S. mortgage unit MortgageIT «for many years engaged in reckless lending forms and repeatedly provided false information in order to to be included in the program of the federal government insurance of mortgage loans. " In this case, according to authorities, after inclusion of these products in the insurance program for bank resold them, reaping a profit. According to the statement of claim, the U.S. authorities "as soon as he was able to achieve inclusion, the bank unfairly picked to participate in the program credits that do not conform to the requirements of the Government, obviously ignoring the fact that borrowers may not be able to make payments." New York-based MortgageIT was founded in 1988, becoming one of the largest U.S. private companies for the sale of mortgages on residential property, in 1999-2009 it provided in the federal program of mortgage insurance in excess of 39 thousand mortgage products totaling more than $ 5 billion Shortly before the crisis, in 2007, Deutsche Bank for $ 430 million bought MortgageIT, so now is one of the co-defendants in the lawsuit. The lawsuit alleges that during the consideration of applications for inclusion of mortgage products to the federal mortgage insurance program of the Ministry of Housing and Urban Development made the remarks to bankers about the quality of the claimed products. MortgageIT promised to make the necessary changes, but actually do nothing. After a while MortgageIT reported to the authorities that all the necessary recommendations have been implemented. How the authorities to check this information does not say anything. Following the deterioration in the mortgage market, the Ministry of Housing and Urban Development had to pay insurance reimbursement for these products. As of February 2011 the sum of these insurance payments were $ 386 million in the lawsuit says that, in accordance with federal law on fraudulent claims, the plaintiff requires three times the compensation of damages. Once the claim of U.S. $ 1 billion, it became known in the early hours of trading on the New York Stock Exchange, shares of Deutsche Bank fell 2%. The bank itself said that it considered the charges groundless and intends to defend its case in court.