Ille

Instead, Deutsche Bank advised Ille in two separate meetings before it signed the contract in 2005 that the spread between the two interest rates would likely widen, making the investment profitable.

Deutsche Bank Loses Swaps Case Laura Stevens 2011

Deutsche Bank's attorney said during oral arguments last month that Ille was informed that losses were "theoretically infinite," and received a calculation and disclosure of all risks.

Deutsche Bank Loses Swaps Case Laura Stevens 2011

Jochen Weck , an attorney representing Ille and other plaintiffs, estimated Deutsche Bank generated as much as €1.2 billion in total profits from such swaps, while its interest-rate swap clients lost an average €1 million to €1.5 million on each deal.

Deutsche Bank Awaits Verdict in Swaps Case David Crawford 2011

EPA Deutsche Bank was cited for conflict of interest and ordered to repay Ille Papier Service $769,000.

Deutsche Bank Loses Swaps Case Laura Stevens 2011

After two years and substantial losses, Ille paid the bank €566,850 to dissolve the contract in January 2007.

Deutsche Bank Loses Swaps Case Laura Stevens 2011

But attorneys representing plaintiffs in cases similar to Ille's argue Deutsche Bank stood to gain drastically through hidden fees every time a customer invested in an interest-rate swap deal.

Deutsche Bank Awaits Verdict in Swaps Case David Crawford 2011

In the case before the federal court, Ille Papier Service GmbH, a bathroom-supplies company in a small town near Frankfurt, charged that Deutsche Bank gave it insufficient information about the risks when it advised the company on buying a spread-ladder swap in 2005.

Deutsche Bank Awaits Verdict in Swaps Case David Crawford 2011

Deutsche Bank's attorney, Reiner Hall , argued in court that Ille received a calculation and disclosure of all risks.

Deutsche Bank Awaits Verdict in Swaps Case David Crawford 2011

Ille has declined to comment while the case is under way.

Deutsche Bank Awaits Verdict in Swaps Case David Crawford 2011

More Earlier: Deutsche Bank Awaits Swaps Verdict In its ruling, Germany's Federal Court of Justice ordered Deutsche Bank to repay €541,000 $769,000 to German bathroom supplier Ille Papier Service GmbH, one of hundreds of small German companies that bought such swaps on the bank's advice in hope of saving on interest-rate payments.

Deutsche Bank Loses Swaps Case Laura Stevens 2011