Defendant Name: Deutsche Bank Securities, Inc.

Defendant Type: Subsidiary of Public Company

Document Reference: 2009-127_09-cv-05174

Document Details

Legal Case Name SEC v. Deutsche Bank Securities Inc.
Document Name SEC Finalizes ARS Settlements With Bank of America, RBC, and Deutsche Bank
Document Date 03-Jun-2009
Document Format Civil Proceeding
Case Number 09-cv-05174
Federal District Court New York, Southern District of New York
Allegation Type Broker Dealer
Document Summary The SEC "announced finalized settlements with Bank of America, RBC Capital Markets, and Deutsche Bank to resolve SEC charges that the firms misled investors regarding the liquidity risks associated with auction rate securities (ARS) that they underwrote, marketed, or sold."

Disgorgement & Penalty Information

Resolutions
Enjoinment
Various undertakings: "will offer to purchase ARS at par from individuals, charities, and small or medium businesses that purchased those ARS from the firm, even if those customers moved their accounts . . . will use its best efforts to provide liquidity solutions for institutional and other customers and will not take advantage of liquidity solutions for its own inventory before making those solutions available to these customers . . . will pay eligible customers who sold their ARS below par the difference between par and the sale price of the ARS"

Related Documents:

comp21066-dbs 03-Jun-2009 Complaint
Complaint
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."
LR-21066_09-cv-05174 03-Jun-2009 Litigation Release
SEC Finalises ARS Settlements With Bank of America, RBC and Deutsche Bank, Providing Over $6 Billion in Liquidity to Investors
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."
court_doc3_09-cv-05174 09-Jun-2009 Court Docket Document
Judgment
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."