Deutsche Bank Fined $7M Over Hedge Fund Lending Program

Law360, New York (December 19, 2013, 2:56 PM EST) -- A unit of Deutsche Bank AG on Thursday was fined $6.5 million and censured by the Financial Industry Regulatory Authority for serious financial and operational deficiencies with its enhanced lending program.

FINRA said the violations, first detected during a 2009 examination, included a lack of transparency in Deutsche Bank Securities Inc.'s financial records and faulty calculations that resulted in overstated capitalization and insufficient customer reserves.

“First and foremost, a brokerage firm must ensure that its customer assets are protected,” FINRA enforcement head Brad Bennett said in...
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