Freshfields acts for Deutsche mortgage arm on £840,000 FSA fine
Freshfields Bruckhaus Deringer has advised Deutsche Bank's mortgage division on its £840,000 fine from the Financial Services Authority (FSA). City partner Andrew Hart - who has co-led the magic circle firm's financial institutions group since November last year - advised DB Mortgages, which has agreed to pay the £840,000 penalty for irresponsible lending practices and unfair treatment of customers in arrears.
February 25, 2011 at 10:40 AM
2 minute read
Freshfields Bruckhaus Deringer has advised Deutsche Bank's mortgage division on its £840,000 fine from the Financial Services Authority (FSA).
City partner Andrew Hart (pictured) – who has co-led the magic circle firm's financial institutions group since November last year – advised DB Mortgages, which has agreed to pay the £840,000 penalty for irresponsible lending practices and unfair treatment of customers in arrears.
The bank has also agreed to pay back around £1.5m to customers that were unfairly treated.
The £840,000 fine was discounted by 30% from £1.2m after the FSA took into account DB Mortgages' efforts to improve its arrears handling procedures, and that it had worked in an open and co-operative way with the FSA.
Margaret Cole, the FSA's managing director of enforcement and financial crime, said: "Firms need to understand that we will not tolerate lax lending practices and unfair treatment of customers in arrears. Firms which fail in their obligations to customers should expect not only a substantial fine but also that they will have to pay back customers who have been disadvantaged by their failings."
However, one City finance partner said: "Deutsche Bank is one of the world's largest banks and probably spends this amount of money on phone calls every minute. I can't comment on what it did or did not do, but this fine is merely a slap on the wrist."
DB Mortgages said in a statement: "Following the identification of the issues raised by the FSA in an industry-wide review started in 2008, DS mortgages immediately commissioned a third-party review into its lending and arrears collection processes. As a consequence, DB mortgages has improved its oversight of mortgage servicing activities."
The division was wound down in mid-2008 and no longer originates mortgages. Freshfields is a longstanding adviser to Deutsche Bank on regulatory issues.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllSingapore Litigators Shift Competitive Landscape as Another Senior Duo Sets Up Own Shop
US Judge Allows $8M Unpaid Legal Fees Lawsuit Against Sierra Leone to Proceed
2 minute readLondon Trial Against BHP Alleges ‘Red Flags’ Leading up to Brazil Mining Disaster Were Ignored
Trending Stories
- 1Some Thoughts on What It Takes to Connect With Millennial Jurors
- 2Artificial Wisdom or Automated Folly? Practical Considerations for Arbitration Practitioners to Address the AI Conundrum
- 3The New Global M&A Kings All Have Something in Common
- 4Big Law Aims to Make DEI Less Divisive in Trump's Second Term
- 5Public Notices/Calendars
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250