FRANKFURT –  German regionally owned lender BayernLB is suing Deutsche Bank AG (DB) at the New York Supreme Court over residential mortgage-backed securities of a nominal value of $810 million, a spokesman for BayernLB said Friday.
The Munich-based lender is accusing Germany's largest bank for having originated, purchased, financed and securitized exceptionally high-risk loans into these RMBS, all while internally disparaging the poor quality of these loans.
A spokesman for Deutsche Bank said the bank believes the claims are unfounded and will vigorously defend itself. In a similar case, a claim from Franco-Belgian financial group Dexia SA (DEXB.BT) against Deutsche Bank was recently rejected by a U.S. federal court.
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