Report: SEC Is Investigating Deutsche Bank's Mortgage-Bond Trading Business

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Bloomberg
reported on Monday that the U.S. Securities and Exchange Commission began an investigation into
Deutsche Bank AG (USA)DB
and its mortgage-bond trading business. Investigators are examining the positions the bank's unit held and whether the bank delayed recording losses on certain securities over an extended period of time. A delay in writing down bonds could have helped boost the bank's earnings for at least a few quarters in 2013, the report added. "We are cooperating with this investigation, which is looking into previously recognized losses on certain positions," Amanda Williams, a spokeswoman for Deutsche Bank told Bloomberg. This isn't the first time that Deutsche Bank has come under the cross-hairs of a regulatory body. Regulators accused the company's executives in 2013 of having inadequate oversight of its employees and problems in reporting to both regulators and public investors. Despite the report shares of Deutsche Bank were trading higher by 0.71 percent at $17.03 early Monday afternoon.
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Posted In: SECAmanda WilliamsBloombergBond TradingDeutsche BankMortgage Bond TradingSEC
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