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© GRAPHIC NEWS

© GRAPHIC NEWS

© GRAPHIC NEWS

Graphic shows biggest mortgage bond fines.
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BUSINESS

Bank fines for financial crisis

By Duncan Mil

September 16, 2016 - The U.S. Department of Justice is asking Deutsche Bank, Germany's flagship lender, to pay $14 billion to settle an investigation into its selling of toxic mortgage-backed securities before the 2008 financial crisis.

Deutsche Bank is among many financial institutions investigated over dealings in shoddy mortgages in the run-up to the 2008 financial crisis.

The U.S. government has accused the banks of misleading investors about the quality of their bonds that, while promoted as relatively safe, contained sub-prime mortgages to borrowers who were unlikely to repay their loans.

These mortgage-backed securities led to massive losses, kicking off the recession that began in late 2007 as the housing market collapsed and investors suffered billions in losses.

Sources
PUBLISHED: 16/09/2016; STORY: Graphic News
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