SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank
Annual Report 2010 on Form 20-F
Item 8: Financial Information 120
Deutsche Bank AG has also commenced a related restitutionary action in the U.K. against Alexander M. Vik, a
Norwegian businessman and the sole director of SHI, and Vik Millahue, a Chilean company, seeking repayment
to Deutsche Bank AG of certain funds transferred from SHI’s accounts with Deutsche Bank AG (the “UK Vik
action”). The court found that the English courts did not have jurisdiction to hear the UK Vik action and so dismissed
it. Deutsche Bank AG is therefore no longer pursuing the UK Vik action.
The U.S. action is a damages claim brought by SHI against Deutsche Bank AG in New York State court, arising
out of the same circumstances as Deutsche Bank AG’s suit against SHI in the U.K. and seeking damages of at
least U.S.$ 2.5 billion in an amended complaint. The trial court denied SHI’s request to enjoin Deutsche Bank
AG’s suits in the U.K. The trial court denied Deutsche Bank AG’s motion to dismiss or stay the U.S. action in
favor of the U.K. action, while granting Deutsche Bank AG’s motion to dismiss SHI’s tort claims but not its contract
and quasi-contractual claims. The New York Appellate Division affirmed the trial court’s decision, and the
amended complaint was filed after the Appellate Division decision.
Ocala. Deutsche Bank AG is a secured creditor of Ocala Funding LLC (“Ocala”), a commercial paper vehicle
sponsored by Taylor Bean & Whitaker Mortgage Corp., which ceased mortgage lending operations and filed for
bankruptcy protection in August 2009. Bank of America is the trustee, collateral agent, custodian and depository
agent for Ocala. Deutsche Bank AG has commenced a civil litigation in the United States District Court for
the Southern District of New York against Bank of America for breach of contract, breach of fiduciary duty, and
contractual indemnity resulting from Bank of America’s failure to secure and safeguard cash and mortgage
loans that secured Deutsche Bank AG’s commercial paper investment. Deutsche Bank AG has commenced a
separate civil litigation in the United States District Court for the Southern District of New York against Bank of
America for conversion of certain mortgages owned by Ocala. There are pending motions by Bank of America
to dismiss both actions.
Adelphia Communications Corporation. Certain of Deutsche Bank AG’s affiliates were among numerous financial
institutions and other entities that were named as defendants in two adversary proceedings commenced in
2003 by a creditors committee and an equity committee of Adelphia Communications Corporation. In October
2007, the Adelphia Recovery Trust filed an amended complaint consolidating the two adversary proceedings,
which was amended again in February 2008. The consolidated suit sought to avoid and recover certain loan
payments, including approximately U.S.$ 50 million allegedly paid to DBSI in connection with margin loans,
and sought affirmative damages from defendants collectively based on statutory claims and common law tort
claims. The bank defendants filed several motions to dismiss the consolidated complaint, which were granted
in part and denied in part. In October 2010, a settlement was reached in which all but one of the bank defendants
(including Deutsche Bank’s affiliates) resolved all outstanding claims against them in the adversary proceeding
in exchange for a total payment of U.S.$ 175 million by those bank defendants collectively. The settlement has
been approved by the court, and the matter has been dismissed with prejudice as against the settling defendants.
City of Milan. In January 2009, the City of Milan (the “City”) issued civil proceedings in the District Court of Milan
(the “Court”) against Deutsche Bank AG and three other banks (together the “Banks”) in relation to a 2005
bond issue by the City (the “Bond”) and a related swap transaction which was subsequently restructured several
times between 2005 and 2007 (the “Swap”) (the Bond and Swap together, the “Transaction”). The City seeks
damages and/or other remedies on the grounds of alleged fraudulent and deceitful acts and alleged breach of
advisory obligations as follows: In respect of the interest rate element of the Swap, the City suggests a permanent
restructuring of the Swap and claims (i) € 23.6 million as the difference between sums already paid to
date under the existing Swap and what the City would have paid under its suggested structure; and (ii) the
difference between the sums yet to be paid under the existing Swap until maturity and what the City would