UPDATE 1-Dutch pension fund settles with Deutsche over securities

Thu Feb 7, 2013 10:53am EST

AMSTERDAM Feb 7 (Reuters) - Dutch pension fund ABP said on Thursday it has reached a settlement with Deutsche Bank over mortgage-backed securities that it bought from the German bank in 2006 and 2007, ending legal proceedings.

The Dutch pension fund claimed it had purchased certain residential mortgage-backed securities based on "false and misleading statements" and that the securities were far riskier than had been represented, backed by mortgage loans that were worth significantly less than had been represented.

It said Deutsche Bank had denied and continued to deny those claims. No details of the settlement were given.

ABP said it has reached settlements in two other residential mortgage-backed securities-related litigation cases so far, but still has cases pending against Goldman Sachs & Co., Merrill Lynch, Credit Suisse, Morgan Stanley and Ally Financial.

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