{"id":5813,"date":"2015-05-26T00:00:00","date_gmt":"2015-05-26T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/05\/deutsche_bank_ordered_to_pay_5"},"modified":"2022-05-06T15:47:42","modified_gmt":"2022-05-06T20:47:42","slug":"deutsche-bank-ordered-to-pay-5","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/deutsche-bank-ordered-to-pay-5\/","title":{"rendered":"Deutsche Bank Ordered to Pay $55M for Misstating Financial Reports During the Economic Crisis"},"content":{"rendered":"\n<p>The U.S. Securities and Exchange Commission is ordering Deutsche Bank AG (DB) to pay $55M to resolve charges accusing the firm of misstating financial reports during the peak of economic crisis. The regulator believes that the financial institution did not factor the material risk for possible losses of billions of dollars. <\/p>\n<p>According to the regulator, in its order instituting a resolved administrative proceeding, Deutsche Bank overvalued a derivatives portfolio the bank had used to buy protection against losses involving credit default. Due to the to the Leveraged Super Senior trades\u2019 \u201cleveraged\u201d nature the collateral for the positions was minimal compared to the $98 billion in purchased protections. <\/p>\n<p>This generated a \u201cgap risk\u201d that the protection\u2019s market value could potentially go beyond the available collateral. Also, because the sellers that put down the collateral could choose to unwind the trade instead of putting more collateral down in such a situation, this meant that technically the bank was protected only up to its collateral level and not its credit protection\u2019s full market value.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/deutsche-bank-ordered-to-pay-5\/\"  title=\"Continue Reading Deutsche Bank Ordered to Pay $55M for Misstating Financial Reports During the Economic Crisis\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Securities and Exchange Commission is ordering Deutsche Bank AG (DB) to pay $55M to resolve charges accusing the firm of misstating financial reports during the peak of economic crisis. The regulator believes that the financial institution did not factor the material risk for possible losses of billions of dollars. According to the regulator, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3818,3752,3760,3795,3761],"tags":[],"class_list":["post-5813","post","type-post","status-publish","format-standard","hentry","category-deutsche-bank","category-financial-firms","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Deutsche Bank Ordered to Pay $55M for Misstating Financial Reports During the Economic Crisis &#8212; Investor Lawyers Blog &#8212; May 26, 2015<\/title>\n<meta name=\"description\" content=\"The U.S. Securities and Exchange Commission is ordering Deutsche Bank AG (DB) to pay $55M to resolve charges accusing the firm of misstating financial &#8212; May 26, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/deutsche-bank-ordered-to-pay-5\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Deutsche Bank Ordered to Pay $55M for Misstating Financial Reports During the Economic Crisis &#8212; Investor Lawyers Blog &#8212; May 26, 2015\" \/>\n<meta name=\"twitter:description\" content=\"The U.S. Securities and Exchange Commission is ordering Deutsche Bank AG (DB) to pay $55M to resolve charges accusing the firm of misstating financial &#8212; May 26, 2015\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Deutsche Bank Ordered to Pay $55M for Misstating Financial Reports During the Economic Crisis &#8212; 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