Deutsche Bank AG was sued in New York by Landesbank Baden-Wuerttemberg (LBBW), which accuses the German bank of fraud in the sale of $173 million in mortgage-backed securities in 2007, Bloomberg News reported yesterday. Deutsche Bank engaged in "egregious fraud," selling securities that were riskier than promised and leading to losses, LBBW said in a complaint filed yesterday in New York State Supreme Court. LBBW, Germany’s biggest state-owned lender, said Deutsche Bank's misconduct resulted in "astounding" rates of default on loans underlying the securities.
