In a statement at the time of the report, Deutsche Bank spokeswoman Michele Allison said, "As the PSI report correctly states, there were divergent views within the bank about the U.S. housing market. Moreover, the bank's views were fully communicated to the market through research reports, industry events, trading desk commentary and press coverage. Despite the bearish views held by some, Deutsche Bank was long the housing market and endured significant losses."
The Senate panel's report also examined the role of credit- rating firms in the meltdown, lax oversight by Washington regulators and the decline in lending standards that fueled the mortgage bubble and ultimately led to hundreds of bank failures.
The turmoil beginning in 2007 froze credit markets, took down investment banks Bear Stearns Cos. and Lehman Brothers Holdings Inc., sent housing finance giants Fannie Mae and Freddie Mac into government conservatorship and caused the worst economic collapse in the U.S. since the Great Depression.
Last year Goldman Sachs paid $550 million to resolve SEC claims that it failed to disclose that hedge fund Paulson & Co was betting against, and influenced the selection of, CDOs the company was packaging and selling.