The Federal Housing Finance Agency (FHFA), as conservator of Fannie Mae and Freddie Mac, today announced it has reached a settlement with Deutsche Bank AG, related companies and specifically named individuals for $1.925 billion to resolve claims in FHFA v. Deutsche Bank AG, et al., as well as certain other matters. The settlement addresses claims alleging violations of federal and state securities laws in connection with private-label mortgage-backed securities (PLS) purchased by Fannie Mae and Freddie Mac between 2005 and 2007.
Under the terms of the agreement, Deutsche Bank will pay approximately $1.63 billion to Freddie Mac and $300 million to Fannie Mae. As part of the settlement, FHFA, Fannie Mae and Freddie Mac will release certain claims brought against Deutsche Bank related to securities sold to Fannie Mae and Freddie Mac between 2005 and 2007.
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