US Justice Dept charges ex-Deutsche Bank subprime trader with civil fraud

The U.S. Justice Department on Monday charged Deutsche Bank’s (DBKGn.DE) former head of subprime mortgage trading with civil fraud in connection with conduct dating back to the 2007-2009 financial crisis.

Paul Mangione, the former trader, is accused in the complaint of misrepresenting information about the loans underpinning two residential mortgage-backed securities that were sold to investors.

The government’s case against the former trader, filed in a federal court in Brooklyn, came after the bank in January reached a $7.2 billion (5.46 billion pounds) settlement in a related case over risky mortgage securities sold to investors.

Patrick Smith, an attorney at Smith Villazor LLP representing Mangione, issued a lengthy statement criticizing the government for bringing the case against his client.

Source: Reuters

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