As part of the company’s $7.2 billion settlement with the U.S. government, Deutsche Bank AG is supposed to give relief to subprime mortgage borrowers.
In order to avoid tying up capital by providing the loan relief directly, the bank is considering lending to firms like Lone Star Funds, which specializes in buying bad mortgages and lowering consumers’ obligations, according to a person with knowledge of the matter.
It is unclear whether U.S. authorities would accept the plan from Deutsche Bank, which is currently restructuring about $300 million of Trump’s debt.