The former chief of subprime trading at Deutsche Bank has been sued by the government for allegedly misleading investors about the quality of subprime residential mortgage-backed securities.

Paul L. Mangione joined Deutsche Bank in 2000. By 2006, he had worked his way up to managing director at Deutsche Bank Securities Inc. and head of subprime loan trading at Deutsche Bank.

His compensation at the German financial institution was based, in large part. on the profitability of the subprime trading desk that he was in charge of, according to a complaint filed by the Department of Justice.

Source: Mortgage Daily