NEW YORK. Deutsche Bank threaten the current U.S. mortgage scandal cost in the billions. More and more investors who have suffered in the financial crisis in toxic securities to sue large losses, now the bank had sold them the mortgage loans (RMBS), the redemption of the securities. The house had earned money during the housing boom in the distribution of these documents, good money. According to expert estimates, are due to the actions of the German bank may be a cost of up to 20.8 bn to $.
This process has the shaft against the institute, which has been cleverly maneuvered by Bank chief Josef Ackermann so far by the financial crisis, only just begun. "We are preparing further actions," said lawyer David Grais the Handelsblatt, the German bank sued on behalf of clients already on redemption of bonds in the original value of more than 4.5 billion dollars. In at least nine of which are the institution must now defend. The German bank declined to comment on the potential losses from lawsuits. Possibly, the German manufacturer - as before the U.S. competition - use the forthcoming mid-quarter report this week to stand by the shareholders, on the subject and answer questions.
For nearly two weeks in the U.S. mortgage rages, a new scandal, because U.S. banks appear to have driven homeowners wrongly alleged indebtedness from their buildings. The Institute also had the papers in the credit boom by 2007 partly not archived carefully enough, which makes them vulnerable now. Investors who purchased these mortgages packaged into securities (RMBS) hold, the sales contracts of the past, therefore, invalid.
So will such a group of the world's largest bond investor Pimco and the U.S. central bank, Bank of America to force the courts to take back loans in the original value of 47 billion dollars. The charge: A daughter of the Institute was awarded the mortgages to U.S. citizens and sloppy there. The investors want to return so the horrendous losses on these bonds to the seller. Up to $ 180 billion, the crisis is the U.S. financial industry is estimated to cost in the coming years. Shares of Bank of America and other large U.S. banks are under pressure because of the actions.
Although the German bank is also in the U.S. the leading names, and had also taken during the housing boom, an important role, they remained on the current scandal so far been spared. Unlike its U.S. competitors, the German bank has virtually never forgive himself mortgages. She had bought it especially packaged into bonds and then taken over the distribution of these securitizations. This could, however, it now undoing. Because the plaintiffs argue that they have acquired papers were of poor quality, as was claimed in the sales contracts.
What at first glance like an attempt to attach their own losses from bad investments to the seller could Analysts said in court but success. "On closer inspection, found in court records rather convincing evidence that the mortgages were much lower quality than previously claimed," Chris Gamaitoni, an analyst at the investment boutique judges Compass Point. The amount of costs that threaten the Deutsche Bank was, depending on the default rates of mortgages in the respective bonds, the success of the lawsuits and the loss of value of the 2005-2007 selling bonds, explains the analyst. It provides the bandwidth for the total cost with "probably 14 billion dollars, 20.8 billion U.S. dollars in the worst case," at. For the Institute ranks third behind Bank of America and JP Morgan. The two U.S. competitors have already announced their intention to drive the process through the courts. They move as far into the future potential losses.
All analysts who deal with the issue acknowledge, that the extent of the losses for the banks is extremely difficult to assess. The number of complaints is still unclear. So alone represents the Texas attorney Talcott Franklin several investors, unite around a third of the 1.5 trillion dollar market for mortgage bonds themselves. In a letter to the banks they are threatening legal action unless the institutions do not take back the papers. So far this group has called not a court.
German Bank
The Institute: The German bank is the largest German financial institution. Internationally, it is no longer but the top group, measured by market capitalization in Europe it ranks only at number eight. International press the American and Chinese competitors to the Institute.
Net Loss: The German bank will identify the third quarter because of an impairment loss of EUR 2.3 billion on its stake in Postbank, a loss. Analysts on average expected a net loss for the quarter of 1.3 billion euros.