Deutsche-Ille ruling changes sales practices for German dealers

Accentuate the negative

Michael Schick

In March, the Federal Court of Justice in Karlsruhe, Germany, ordered Deutsche Bank to pay €541,000 in damages over the 2005 restructuring of two interest rate swaps. The size of the award has proved to be incidental, however. Far more significant was the detail of the ruling, which turned on Deutsche’s failure to disclose that the restructured swap – a relatively complex trade in which the client’s floating payments were tied to the spread between two-year and 10-year Euribor – had a negative

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: