Christina Livingston, a supporter of people who had lost their homes to foreclosure, or have been battling banks over loan modification, reacts to cheers from fellow protesters as she is arrested outside a Chase bank branch in downtown Los Angeles Thursday, Dec. 16, 2010. Police arrested 22 protesters who blocked the doors to the bank in acts of civil disobedience. (AP Photo/Reed Saxon)
VOD ED. NOTE: Detroit Emergency Manager Kevyn Orr announced a phony “debt moratorium” on the city’s creditors June 14, 2013. As explained in an earlier VOD article, these creditors are for the most part insured, as part of their loan agreements, at the city’s cost. Insurance companies will pay whatever Orr declares a “moratorium” on, such as the $37.9 million due to UBS AG on the $1.5 Billion pension obligation certificate (POC) loan he withheld June 14. The article below explains that Deutsche Bank will not lose out either in the $10 million lawsuit settlement with Los Angeles over foreclosues.)
By Edvard Pettersson – Jun 28, 2013 9:05 PM ET
Deutsche Bank AG (DBK) said servicers and securitization trusts will pay Los Angeles $10 million in a settlement of a lawsuit that had accused the bank of letting foreclosed properties in the city fall into disrepair.
“We are pleased that we could bring together the relevant parties to help facilitate a resolution of this matter for the City of Los Angeles,” Deutsche Bank said today in a statement.“As we have said from the outset, loan servicers are responsible for maintaining foreclosed properties.”
Los Angeles sued the Frankfurt-based bank in May 2011, after it, as trustee for mortgage-backed securities, acquired title to thousands of properties in the city that fell into foreclosure because of the collapse of the U.S. housing market. The bank didn’t admit liability or wrongdoing in the settlement, it said.
Deutsche Bank CEO Josef Ackerman
The city and Deutsche Bank obtained the agreement of the loan servicers that housing code enforcement agencies will have immediate access to people at servicing banks to address code violations, Los Angeles City Attorney Carmen Trutanich said in a separate statement.
“I want to thank Deutsche Bank for working with this Office to find a solution to a problem that has plagued this city for far too long,” Trutanich said.
The case is People v. Deutsche Bank National Trust Co., BC460878, Superior Court of California (Los Angeles).
To contact the reporter on this story: Edvard Pettersson in Los Angeles at epettersson@bloomberg.net.
Related article:
