On December 20, 2013, the Federal Housing Finance Agency (“FHFA”), as conservator of Fannie Mae and Freddie Mac, announced that it will receive settlement payments of $1.925 billion from Deutsche Bank AG in connection with claims of alleged violations of federal and state securities laws related to private-label, residential mortgage-backed securities purchased by Fannie Mae and Freddie Mac.

Settlements “do not constitute any liability or wrongdoing”

The settlement did not “constitute an admission by any of the Deutsche Bank Defendants of any liability or wrongdoing whatsoever” and were therefore favorable, in that sense at least, to Deutsche Bank because admitting wrongdoing could have increased its exposure in private mortgage repurchases lawsuits.