Deutsche Bank Looks to Lend Its Way Out of Mortgage Mess

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Deutsche Bank AG has been offering attractive financing terms to help investors and other banks buy soured mortgages, a bid by the German lender to help fulfill terms of its recent $7.2 billion mortgage settlement with the U.S. government, according to people familiar with the matter, The Wall Street Journal reported. The reason: Deutsche can get credit toward the settlement if it helps others buy troubled loans and those parties then provide relief to the borrowers, the people said. Deutsche’s maneuver, which is in its early days, is another bizarre echo of the housing crisis and the huge settlements that resulted. Big banks have agreed to pay billions of dollars in fines and homeowner relief to resolve allegations their mortgage-trading activities fueled the housing crisis. Read more.(Subscription required.)