NEW YORK: A former head of subprime trading at Deutsche Bank AG will pay a US$500,000 civil fine to resolve charges he misled investors about the quality of loans backing US$1.42 billion of residential mortgage-backed securities issued before the 2008 financial crisis.
More than half the loans were made by Deutsche Bank's DB Home Lending unit, then known as Chapel Funding. The charges were announced eight months after Deutsche Bank reached a US$7.2 billion settlement, including a US$3.1 billion civil fine, with the U.S. government, and admitted to misleading investors about RMBS it sold.Other banks have reached similar settlements. U.S. authorities have long faced criticism that they have not held enough individuals accountable for RMBS failures.