FINRA Fines Deutsche $7.5M Over Subprime MBS

Law360, New York (July 21, 2010, 4:18 PM EDT) -- The Financial Industry Regulatory Authority has slapped Deutsche Bank Securities Inc. with a $7.5 million fine over negligently misrepresenting delinquency data for some of the bank's subprime securities.

Deutsche negligently misrepresented and underreported the percentages of mortgages that were delinquent in the prospectus supplements of six subprime residential mortgage-backed securities issued in 2006, FINRA said Wednesday.

The bank failed to correct errors by a third party vendor and servicers, which underreported the historical delinquency rates of the mortgages in connection with its offer and sale of...
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