M&T Bank Corp. is suing Deutsche Bank AG for $82 million, saying the Frankfurt company's securities unit sold CDOs that proved an unsound investment.

In the suit, filed Monday in the New York Supreme Court for Erie County, M&T said it bought the CDOs in February of last year after being told by Deutsche Bank that the instruments would provide "a higher interest rate than Treasury bills or high-grade corporate bonds, with a risk level lower than high-grade bonds and approaching the risk-free level of Treasury bills."

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