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Lehman Brothers

Deutsche Bank scraps oil notes

By Gregory Meyer in New York

Published: September 1 2009 23:45 | Last updated: September 1 2009 23:45

Deutsche Bank is scrapping a product that lets investors bet on oil prices, making it the first exchange-traded commodity product to go under as Wall Street braces for a potential regulatory crackdown on energy speculation.

The bank said it will redeem all of its PowerShares DB Crude Oil Double Long exchange-traded notes, which uses leverage to double returns from price moves in crude oil. As of Tuesday, there were $425m of such notes.

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