Deutsche Bank Agrees to Pay $75 Million to Settle Despository Receipt Case

[kreslik.news]

US-based depositary bank, broker-dealer arms of German banking giant Deutsche Bank today agreed to pay $75 million to settle claims that they issued American Depository Receipts (ADRs) without possessing the underlying foreign shares.

The Securities and Exchange Commission said Deutsche Bank Trust Co. Americas (DBTCA) and Deutsche Bank Securities Inc. (DBSI) provided ADRs, which are certificates representing ownership of a foreign stock, to clients without ensuring they would be backed by the actual shares. The SEC said that the pre-released ADRs were used for abusive practices, including “inappropriate short selling and inappropriate profiting around dividend payouts.”

DBTCA and DBSI, which ... (read more)