Deutsche Bank will pay $1.9 billion to settle a lawsuit with the the Federal Housing Finance Agency over mortgage-backed securities, part of the bank’s efforts to resolve a long list of legal issues.
The suit was Deutsche’s single largest mortgage-litigation case, covering allegations that the bank did not adequately disclose information about residential mortgage-backed securities sold to taxpayer-owned mortgage financiers Fannie Mae and Freddie Mac between 2005 and 2007.
The FHFA had sued 17 banks in the case and has already achieved settlements with JP Morgan and UBS.
Deutsche Bank said in a statement Friday it had exited the businesses at the heart of the housing suit and had improved its controls.