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Goldman, Deutsche Bank fail to end U.S. mortgage lawsuits

Nov 13 2012 Jonathan Stempel, Reuters

A U.S. judge rejected bids by Goldman Sachs Group Inc and Deutsche Bank AG to dismiss a federal regulator's lawsuits accusing them of misleading Fannie Mae and Freddie Mac into buying billions of dollars of risky mortgage debt. In separate decisions on Monday, U.S. District Judge Denise Cote in Manhattan said the Federal Housing Finance Agency may pursue fraud claims over some of the banks' representations in offering materials regarding mortgage underwriting standards. The FHFA had sued over certificates that Fannie Mae and Freddie Mac, known as government-sponsored enterprises, had bought between September 2005 and October 2007. Goldman underwrote about $11.1 billion of the certificates, and Deutsche Bank roughly $14.2 billion, the regulator has said. Michael DuVally, a Goldman spokesman, declined to comment, as did Deutsche Bank spokeswoman Renee Calabro. Trials in both cases are scheduled to begin in September 2014. Last year, the FHFA filed 18 lawsuits against banks

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