Justice Department charges ex-Deutsche Bank subprime trader with civil fraud

WASHINGTON (Reuters) – The U.S. Justice Department on Monday charged Deutsche Bank’s (DBKGn.DE) 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

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