Deutsche Bank has settled a lawsuit filed by BayernLB that alleged Germany's top bank sold mortgage-backed securities to external clients while criticizing them in-house and profiting when they failed.
A U.S. appeals court has ruled that the National Credit Union Administration's lawsuit was not filed too late against issuers of mortgaged-backed securities, which include the Royal Bank of Scotland Group and Nomura Holdings.
The Federal Reserve says it is trimming purchases of agency mortgage-backed securities from $15 billion to $10 billion a month. The central bank's MBS buying totaled $7.205 billion from July 24 through Wednesday, down $2.3 billion compared with the previous purchase.
The Federal Housing Finance Agency has reached a settlement with RBS Securities for $99.5 million as it works as a conservator to settle lawsuits on behalf of Freddie Mac and Fannie Mae related to sales of mortgage-backed securities.
The Federal Reserve has released a survey of dealers showing that over the past few months they have seen an increase in demand for private-label mortgage-backed securities. The Fed's Senior Credit Officer Survey results indicate that the housing market could being seeing more freely flowing private capital.
Citigroup and Deutsche Bank agreed to settle claims by the National Credit Union Administration related to sales of mortgage-backed securities. Citigroup will pay $20.5 million and Deutsche Bank will pay $145 million. The settlements are the first federal recovery of mortgage-bond losses incurred by collapsed financial institutions.