In a lawsuit filed Wednesday in state court, the Los Angeles city attorney's office asked a judge to fine Deutsche Bank hundreds of millions of dollars, the Los Angeles Times reported. The city also seeks an injunction to force the German bank to fix up the 2,000 properties it has foreclosed on in Los Angeles during the past four years.
Deutsche Bank, the city claims, is among "the largest slumlords in Los Angeles."
Deutsche Bank spokesman John Gallagher said in a statement Los Angeles "has filed this lawsuit against the wrong party."
"As we have repeatedly advised the Los Angeles city attorney's office, loan servicers, and not Deutsche Bank as trustee, are contractually responsible for both the maintenance of foreclosed properties and any actions taken with respect to tenants of foreclosed properties," he said.
Gallagher said Deutsche Bank has tried to help put the city attorney's office in touch with the responsible parties.
No city has successfully gone after banks in this manner, city officials said.
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