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Dutch pensions giant ABP settles with Deutsche Bank over RMBS

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  • Dutch pensions giant ABP settles with Deutsche Bank over RMBS

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GLOBAL – The €281bn civil service scheme ABP has reached a settlement with Deutsche Bank in a lawsuit over residential mortgage-backed securities (RMBS).

In the court case – filed in September 2011 at the New York Supreme Court – ABP claimed it had purchased RMBS from Deutsche Bank based on "false and misleading" statements.

ABP argued the securities were "far riskier, and backed by mortgage loans worth significantly less, than had been represented".

According to the pension fund, Deutsche Bank, which declined to comment on the case, continues to deny the claims.

ABP said it was satisfied with the settlement, which had been reached within a "reasonable" time frame, adding that it was pleased Deutsche Bank had been willing to reach a mutually satisfactory conclusion to the litigation.

The pension fund recently reached settlements in similar cases against investment bank JP Morgan Chase and mortgage provider Countrywide.

The settlements are thought to be for tens of millions of euros in total.

The civil service scheme still has cases pending against the investment banks Goldman Sachs, Merrill Lynch, Credit Suisse, Morgan Stanley and Ally Financial.

A spokesman at ABP said the pension fund was hoping to reach further "clean settlements" soon, following the three concluded cases.

He declined to provide details about the scale of the damages in total claimed by the pension fund.

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  • QN-2546

    Asset class: Real Estate Equity Fund (non listed).
    Asset region: Europe.
    Size: Total CHF 600m, approx. CHF 100-300m per fund investment.
    Closing date: 2019-06-28.

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