The Department of Justice says bank employees ignored the warnings of its primary due diligence vendor about the quality of loans underlying its RMBS.
The SEC says Moody's failed to ensure the accuracy of statistical models and apply rating symbols consistently.
The Justice Department says the penalty is the largest it has ever imposed for financial crisis-era misconduct at a bank.
The bank's former head of subprime trading allegedly misrepresented the quality of securitized loans to protect Deutsche's bottom line and his own salary.
"This settlement is a stark reminder of what happened to this bank before the financial crisis," the bank's CEO says.
The Swiss bank was accused of misrepresenting the risks of roughly $1.15 billion of RMBS it sold to the U.S. Central and Western corporate credit unions.
U.S. authorities say an Ally subsidiary marketed mortgage bonds even though it knew a "significant percentage" of the underlying subprime loans was toxic.
The bank will receive $645 million from the WaMu receivership estate in exchange for dropping more than $1 billion in indemnification claims.
Edwin Chin allegedly misrepresented the terms of RMBS trades to increase Goldman's profits and his own compensation.
The SEC's case against DBRS is the second this year involving credit rating agencies' evaluations of complex financial instruments.
The FDIC sued the banks over their role as trustees of nearly $2.2 billion of securities purchased by failed financial institution Guaranty Bank.
A U.S. bankruptcy court judge refuses to increase the valuation for mortgages underlying investor claims.
