The words of a Deutsche Bank (DB) trader who allegedly referred to loans underlying certain residential mortgage-backed securities as “pigs” and “crap” have come back to haunt the German banking giant. This week, Belgium lender Dexia filed suit against Deutsche Bank claiming the bank sold it $1 billion of RMBS. These deals were marketed, Dexia says, even though the securities were backed by high-risk loans. They claim Deutsche did so without truly representing the quality of the underlying mortgages. Deutsche Bank could not be immediately reached for comment Thursday afternoon. The suit was filed in a New York court. Dexia claims Deutsche sold the RMBS and then established a $10 billion short position in that segment to profit from weaknesses in RMBS. The accusations against Deutsche first surfaced in a Senate subcommittee report on the banking crisis titled “Wall Street and the Financial Crisis: Anatomy of a Financial Collapse.” In that report, the lawmakers said they uncovered information about how Deutsche Bank’s top global collateralized debt obligations trader warned colleagues and clients about the poor quality of RMBS securities within many CDOs, describing them as “crap” and  “pigs” — the same verbiage cited in Dexia’s lawsuit. Dexia is suing Deutsche for common law fraud, fraudulent inducement, aiding and abetting fraud and negligent misrepresentation. Write to Kerri Panchuk.