NEW YORK—A former head of subprime trading at Deutsche Bank AG. will pay a $500,000 civil fine to resolve charges he misled investors about the quality of loans backing $1.42 billion of residential mortgage-backed securities (RMBS) issued before the 2008 financial crisis.
The U.S. Department of Justice on Nov. 14 announced the settlement with Paul Mangione, who was also a former Deutsche Bank managing director, who did not admit wrongdoing. Settlement papers were filed with the federal court in Brooklyn, New York.
