ACTIONS CORNER

A survey conducted by Credit Suisse indicates that European banks who are involved in dark pools can expect problems with the law. Within the murk of dark pools, buyers and sellers are not obliged to declare their transactions before making agreements and finalising deals. Investigations could extend to Deutsche Bank which, according to Société Générale, is involved in the fourth largest dark pool. Furthermore, the city of Providence in Rhode Island has reportedly filed a class action in which Deutsche Bank and UBS are cited along with Barclays. Credit Suisse estimates that Deutsche Bank is facing a legal bill of some 157 million dollars.

Deutsche Bank and another five banks are being sued by a number of major investors such as Pimco, BlackRock and DZ Bank for their dealings in high risk. mortgage bonds. In their suit, deposited in New York on June 18, the plaintiffs allege that the banks were in breach of their duties as guarantors by not obliging the issuers of mortgage backed securities to buy back their particularly weak credits. Losses sustained in the US are estimated  at some 250 thousand million dollars and those who suffered are claiming compensation.