We’ve spent the last few years avidly covering the ongoing Götterdämmerung at Deutsche Bank, where almost everything that could go wrong has, and those few things that haven’t still could. Why, just this week, we found cause to celebrate the umpteen-millionth (and umpteen-millionth and first) fine the Germans have had to cough up in recent years, on account of it not coming with an indictment. This really does qualify as good news in Frankfurt nowadays, where the ragged survivors of countless rounds of layoffs huddle for warmth around the Bloomberg terminals, flinching whenever a headline starting with the letter ‘D’ appears on the screen.
But today, we have some honest-to-goodness, genuinely good news for Deutsche Bank, the first its seen in the better part of a decade.
A federal judge on Tuesday said investors seeking to hold Deutsche Bank AG liable for causing $3.1 billion of losses by failing to properly monitor 10 trusts backed by toxic residential mortgages cannot pursue their claims as a group….
Royal Park accused Deutsche Bank National Trust Co, in its role as bond trustee, of ignoring "widespread" deficiencies in how loans underlying the trusts were underwritten and serviced, and failing to require that lenders buy back defective loans.
Which is great news, because the other DB has already ponied up $9 billion worth of “we’re sorries” over the whole tiresome mortgage thing, and also because it may not have $3.1 billion-plus left. The raw sewage, already up to John Cryan’s chin, may have just subsided slightly. For now.
The two-page denial was without prejudice, meaning Royal Park and its law firm Robbins Geller Rudman & Dowd may seek class certification later.