So, let’s get this straight, the dude is “systematically and intentionally” lying about the quality of the subprime loans… the same financial products that they sold to unsuspecting homeowners? So… chances are they were lying to homeowners too, yeah? Seems logical, doesn’t it?
In what can only be regarded as a shocking development, the United States is suing the former head of subprime mortgage trading at Deutsche Bank over “systematically and intentionally” lying about the quality of subprime mortgages that backed nearly $1.5 billion in mortgage-backed securities in the run-up to the crisis.
The lawsuit marks one of only a handful of times the government has gone after an individual for crisis-era mortgage fraud at the systemic level; an untold amount of MBS traders from this era still walk free.