Deal to see Deutsche Bank pay out US$17.5 million over finance crisis


BOSTON — Deutsche Bank Wednesday reached a settlement with state regulators in Massachusetts to pay US$17.5 million over its alleged failure to inform customers about conflicts of interest in investments they made ahead of the financial crisis of 2007-2008.

The failure involved investments in certain instruments known as collateralized debt obligations, or CDOs, also known as Carina. Deutsche Bank officials did not disclose that a trading group at the firm and a hedge fund had structured the product, the Secretary of the Commonwealth William Galvin said.