$202M to settle civil fraud charges

Deutsche Bank agreed to pay $202 million to settle civil fraud charges brought by the federal government over the practices of a subsidiary, authorities said.

A federal judge in Manhattan approved the deal reached by representatives of the Frankfurt, Germany-based bank and the government.

Under the agreement, announced Thursday, Deutsche Bank AG admitted it didn't follow all federal housing regulations when it made substantial profits between 2007 and 2009 from the resale of risky mortgages through its subsidiary MortgageIT. The subsidiary had branches in all 50 states. The bank agreed to pay $202.3 million to the U.S. Department of Justice within a month.