In 2007, the report says, Deutsche Bank rushed to sell off mortgage-backed investments amid worries that the market for subprime loans was deteriorating.
“Keep your fingers crossed but I think we will price this just before the market falls off a cliff,” a Deutsche Bank manager wrote in February 2007 about a deal stocked with securities created from raw material produced by Ameriquest and other subprime lenders.
In a statement responding to the Senate report, the bank said that, despite “the bearish views held by some,” it was generally optimistic about the housing market “and endured significant losses” when the market crashed.
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