Deutsche Bank is being sued for more than $1bn by the U.S. government but the bank may find it is shielded from any serious penalty payments because most of the offending mortgages targeted in the lawsuit were generated before the bank bought Mortgage IT, according to analysts at Commerzbank.

According to the U.S .Federal Housing Administration (FHA) the bank and its former subsidiary Mortgage IT took advantage of a Federal Housing Administration (FHA)program that insured mortgages with a guarantee against possible defaults.

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