The government says the German bank and one of its subsidiaries "illegally obtained government insurance for substandard mortgages during the U.S. housing boom" and that as a result, many of the loans went into default, costing taxpayers at least $386 million to date. The suit, brought by Preet Bharara, the U.S. Attorney for the Southern District of New York, seeks $1 billion in damages. Deutsche Bank says it will "vigorously" defend the case.
