The Federal Reserve will fine Deutsche Bank $156.6 million for “unsafe” foreign exchange trading practices and for lacking proper safeguards to implement a rule banning insured banks from making trades with their own capital, the central bank announced Thursday.
The Fed fined the German financial giant $136.9 million after several Deutsche Bank foreign exchange traders coordinated the sales and purchases of foreign currency with competitors in online chatrooms.
The Fed also fined Deutsche Bank $19.7 million for failing to create adequate controls to prevent “Volcker Rule” violations. That rule, a part of the Dodd-Frank financial reform law, bans government-backed banks from making proprietary investments, or trades with the bank’s own money.
{mosads}“The Board also found that the firm failed to properly undertake certain required analyses concerning its permitted market-making related activities,” said the Fed. “The consent order requires Deutsche Bank to improve its senior management oversight and controls relating to the firm’s compliance with Volcker rule requirements.”
Deutsche Bank said “We are pleased to resolve these civil enforcement matters with the Federal Reserve.”
Deutsche Bank paid a record $2.5 billion in fines and fired several top employees to settle government charges that it conspired to manipulate interest rates in 2015.
Updated at 5:58 p.m.