Reuters first to report US sues Deutsche Bank for mortgage fraud, driving shares lower

Reuters was first to report on May 3 that the U.S. government had sued Deutsche Bank and its MortgageIT unit for mortgage fraud, and was seeking more than $1 billion. The government accused the companies of lying about the quality of their mortgage loans in order to obtain federal insurance, and win millions of dollars in fees. The lawsuit opened a new chapter in the government`s push to hold banks and lenders responsible for excesses that led to the U.S. housing slump and contributed to the global financial crisis. The Justice Department said other banks are being probed as well. Deutsche Bank shares began falling immediately after the news, and eventually lost as much as 3.7 percent that day. Reuters was about six minutes ahead of Bloomberg and Dow Jones in reporting the lawsuit.