Deutsche Bank AG agreed to a $15 million settlement to resolve allegations in a U.S. civil lawsuit that it conspired to manipulate the prices of unsecured bonds issued by U.S. government-sponsored enterprises Fannie Mae and Freddie Mac, Reuters reported.
The German lender did not admit to any wrongdoing in agreeing to the settlement, which is subject to court approval, according to the newswire.
The lawsuit was filed by investors, including Pennsylvania Treasurer Joe Torsella, accusing 16 financial institutions of exploiting their market share to overcharge investors from 2009 to 2016 to secure more profit. The companies underwrote $3.97 trillion, or 77.2%, of Fannie Mae and Freddie Mac bonds in the seven-year period, according to the complaint. The matter is also being investigated by the U.S. Department of Justice.
Deutsche Bank received leniency by providing information about other banks accused of rigging the prices of the bonds, Bloomberg News reported. The bank reportedly came forward in May to assist Pennsylvania and other plaintiffs in the lawsuit.
Earlier in September, the U.S. Treasury Department and the Department of Housing and Urban Development released their respective proposals to recapitalize Fannie Mae and Freddie Mac, which were placed into conservatorship in the wake of the 2008 financial crisis.
