The payment of 1.4 billion euros resolves claims involving the sale of mortgage-backed securities to the U.S. government-sponsored lenders Freddie Mac and Fannie Mae. U.S. officials said $1.63 billion would go to Freddie Mac and the rest of Fannie Mae.
FHFA alleged Deutsche Bank violated federal and state securities laws between 2005 and 2007. The agreement does not cover claims that Deutsche Bank was involved in manipulation of the London Interbank Offered Rate or LIBOR.
"Today's agreement marks another step in our efforts to resolve the Bank's legacy issues, and we intend to make further progress in this regard throughout 2014," Jurgen Fitschen and Anshu Jain, the bank's chief executive officers, said in a statement. "We have exited the mortgage businesses that gave rise to these claims and have further improved our controls."
FHFA filed 18 lawsuits over private-label mortgage-backed securities in 2011 and has now settled six of them.
Notable deaths of 2014 [PHOTOS]
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