BUSINESS

Deutsche Bank paying $55M settlement on incorrect reports

Staff Writer
Columbus CEO

WASHINGTON (AP) — Germany's Deutsche Bank AG has agreed to pay $55 million to settle civil charges of filing incorrect reports during the financial crisis that downplayed risks of huge losses.

The U.S. Securities and Exchange Commission announced the settlement Tuesday with the big German bank, which is a prominent institution on Wall Street. Deutsche Bank neither admitted nor denied the allegations but did agree to refrain from future violations of the securities laws.

The SEC said that in some quarterly reports in 2008, Deutsche Bank inflated the value of its transactions designed to hedge against losses on securities in the credit markets, which were turbulent at the time. That created a "gap risk" worth billions of dollars that wasn't properly taken into account in the bank's reports, the agency said.