FINRA fines Deutsche Bank $7.5MNews added by ProWEB Media on July 22, 2010
Gary Linnell

ProWEB Media

Joined: December 27, 2005

The Financial Industry Regulatory Authority announced Wednesday it fined Deutsche Bank Securities Inc. $7.5 million for negligently misrepresenting delinquency data in connection with the issuance of subprime securities.

FINRA found that Deutsche Bank Securities "misrepresented and underreported" the percentages of mortgages that were delinquent in the prospectus supplements of six subprime residential mortgage backed securities issued in 2006.

The regulator said that the firm also failed to correct errors by a third party vendor and servicer, which underreported the historical delinquency rates of the mortgages in connection with its offer and sale of 16 additional subprime MBS issued in 2007. It also alleged that Deutsche Bank Securities failed to establish a system to supervise its reporting of required historical delinquency information.
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