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Deutsche Bank pays $202M in NY mortgage fraud dealDeutsche Bank pays $202M in NY to settle mortgage fraud complaint brought by US government
NEW YORK (AP) ' Deutsche (DOY'-chuh) Bank has agreed in New York to pay $202 million to settle a civil fraud lawsuit brought by the federal government a year ago.
A federal judge in Manhattan on Thursday approved an agreement signed by representatives of the bank and the government. In the deal, the Frankfurt, Germany-based Deutsche Bank AG admitted and took responsibility for the fact it didn't conform with all federal housing regulations when it made substantial profits between 2007 and 2009 from the resale of risky mortgages. The government said in its lawsuit the bank's failures caused the government to foot the bill for loans that defaulted.
The government says the bank carried out the fraud through its subsidiary Mortgage IT. The subsidiary employed more than 2,000 people at branches in all 50 states.
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