Markets:
DJIA +572.161.85%
NASDAQ +196.681.55%
S&P +73.471.95%
Featured Stocks:
SQ 0.90% 216.44
TLT +0.19% 138.91
ADBE +0.40% 440.83
PBR +1.70% 7.76

Deutsche Bank

Article Index

Deutsche Bank's Lehman Behavior Signals a Looming Stock Market Crash

By , Money Morning -

stock market crash

Yesterday, Deutsche Bank boss John Cryan made a public statement that the bank's balance sheet "remains absolutely rock-solid."

But the CEO's impromptu disclosure stoked suspicion among investors. Telling the public nothing is wrong is typically emblematic of a problem.

And it smacks of a scenario we've seen before - one that sent the global economy reeling almost eight years ago...

Justice Department Sues Deutsche Bank AG (NYSE: DB) for 'Reckless Lending'

By , Associate Editor, Money Morning • @DavidGZeiler -

The U.S. Department of Justice filed a lawsuit Tuesday accusing Deutsche Bank AG (NYSE: DB) of "reckless lending practices" when recommending loans to be insured by the Federal Housing Administration (FHA).

The suit seeks damages of more than $1 billion.

Deutsche Bank and its subsidiary, MortgageIT, broke U.S. Department of Housing and Urban Development (HUD) rules for establishing that borrowers had the income and credit histories that would ensure repayment of the loans, according to the Justice Department's complaint.

"As alleged, MortgageIT and Deutsche Bank ignored every type of red flag and breached every duty of due diligence before underwriting thousands of federally insured mortgages," U.S. Attorney Preet Bharara told United Press International. "Ultimately, prudence was trumped by profit, and good faith took a back seat to good fees. This is exactly the kind of misconduct that our Civil Frauds Unit was created to combat."

Read More…