Massachusetts on Wednesday fined Deutsche Bank AG $17.5 million, saying it deceived clients in creating and marketing $10 billion worth of collateralized 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. Deutsche Bank Securities and Magnetar co-invested in at least six different CDOs with a value of $10 billion, Galvin's office said. Galvin's office specifically investigated Deutsche Bank Securities Inc's (DBSI's) role in a $1.56 billion CDO named Carina between December 2005 and November 2007. A year ago, Galvin's office fined custody bank State Street Corp $5 million for its role in deceiving investors about the product. State Street was
↧