U.S. Justice Dept charges ex-Deutsche Bank subprime trader with civil fraud

Reuters News
Posted: Sep 11, 2017 5:43 PM

WASHINGTON (Reuters) - The U.S. Justice Department on Monday charged Deutsche Bank's 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 came after the bank in January reached a $7.2 billion settlement in a related case over risky mortgage securities sold to investors.

(Reporting by Sarah N. Lynch; Editing by Jonathan Oatis)