Massachusetts fines Deutsche Bank US$17.5 million

Massachusetts has fined Deutsche Bank US$17.5 million (HK$135.8 million), saying it deceived clients in creating and marketing $10 billion worth of collateralised debt obligations.

Secretary of the Commonwealth William Galvin said Deutsche Bank Securities Inc, a unit of Germany’s largest bank Deutsche Bank, failed to fully disclose what was in the financial products or that hedge fund Magnetar Capital was betting their value would fall.

“We are pleased to have reached a settlement and to put this matter behind us,” a spokesman for Deutsche Bank said.

via Business feed http://www.scmp.com/business/companies/article/1190417/massachusetts-fines-deutsche-bank-us175-million