Deutsche Bank agreed to pay $208 million to the office of New York Attorney General Eliot Spitzer and $17 million to the Securities and Exchange Commission to settle charges that it permitted market timing in its mutual funds and that its broker/dealer allowed clients to late trade funds.

The agreement with Spitzer consists of $102 million in restitution, $20 in civil penalties and $86 in fee reductions over five years.

The firm also agreed to set up measures and business practices to guard against such abuses in the future—including an independent chairman of its fund boards. The firm is also hiring a senior officer to ensure that fees charged by the funds are negotiated at arm’s length.

Meanwhile, Deutsche Bank issued a statement indicating that another market-timing lawsuit by the Illinois Secretary of State is still pending. This should result in total fines of $6 million, the firm said, $4 million of which will go toward investor education programs and $2 million to the state’s securities audit and enforcement fund.

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