German Court Orders Deutsche Bank To Pay Over Swaps

Law360, New York (March 22, 2011, 3:20 PM EDT) -- Germany's high court reportedly ruled Tuesday that Deutsche Bank AG must pay €541,000 ($767,000) plus interest to a paper company that claims the financial giant did not disclose the risks associated with certain derivatives it was selling.

The Federal Court of Justice of Germany said that Deutsche Bank had not sufficiently informed ILLE Papier-Service GmbH about the risks of a complicated transaction called a CMS spread ladder, according to the Associated Press.

The CMS spread ladder was used by smaller companies and local governments to lower...
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