The SEC stated: "This is a case in which DBSI misled its customers about the fundamental nature and increasing risks associated with auction rate securities ("ARS") that it underwrote, marketed andlor sold. Through certain client advisors ("CAs") at one ofits divisions, third-party marketing materials, and account statements, DBSI misrepresented to its customers that ARS were safe, highly liquid investments comparable to cash or money market instruments. As a result, numerous customers purchased ARS using funds that they needed to remain available on a short-term basis."

The SEC "announced that it has filed complaints in the United States District Court for the Southern District of New York against Banc of America Securities LLC and Banc of America Investment Services, Inc. (collectively, Bank of America), RBC Capital Markets Corporation (RBC), and Deutsche Bank Securities Inc. (Deutsche Bank) alleging that the firms misled investors regarding the liquidity risks associated with auction rate securities (ARS) that they underwrote, marketed or sold."

On June 9, 2009, the Court issued a judgment against Defendant Deutsche Bank Securities Inc. stating: "Defendant . . . consented to the Court's jurisdiction over Defendant and the subject matter of this action; consented to entry of this Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Judgment."