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- Deutsche Bank Is Weighing Massive Cuts in Its U.S. Cash Equities Unit
- Richard Jenrette, Co-Founder of DLJ Investment Bank, Dies at 89
- Goldman Sachs Makes First Hire in Cryptocurrency Markets Unit
- Special FINRA Election to Fill Large Firm Governor Vacancy
- Chicago-Based Investment Adviser Sentenced to 151 Months in Prison - SEC
- Dun & Bradstreet Hit With FCPA Violations - SEC
- SEC Charges Additional Defendant in Fraudulent ICO Scheme
- Warren Buffett Simply Blew it on Wells Fargo Stock: Dick Bove (Video)
- Barclays and Deutsche Bank to Lag U.S. Trading Peers
- NY AG Schneiderman Seeks to Close Loophole That Could Let Trump Pardons Block State Charges
- 'Fearless Girl' is Moving to NYSE After Year Staring Down 'Charging Bull'
- What's In Your Wallet - American Express Shares Soar After Earnings Release
- Deutsche Bank's Executive Departures Continue Following Change in CEO
- Reflections of an Economist Commissioner (SEC's Piwowar)
- Billionaire HF Manager and The Fed Chair Runner-Up are Investing in New Cryptocurrency
- Court Finds 2 Brokers Liable for Fraud Involving Mortgage-Backed Securities
- One FINRA: An Organization’s Commitment to Diversity and Inclusion
- 2018 GASB Accounting Support Fee to Fund the Governmental Accounting Standards Board
- Barclays Eyes Move Into Cryptocurrency Trading
- Goldman Breaks From Wall Street Pack with Bond-Trading Boom
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NEWSLETTERS & ALERTS
Federal Reserve Fines Deutsche Bank $157Mn for Forex, Supervisory Violations
[Photo: By Björn Laczay, from Moosburg, Germany / Flickr]
Deutsche Bank agreed to pay $157 million to settle Federal Reserve charges that bank foreign exchange traders had used chat rooms to communicate with other banks, and thus violated both foreign exchange rules and Volcker rules:
- $20 million for having lax supervision i.e., failed to detect and prevent its forex traders from using chat rooms; and,
- $137 million for having disclosed some positions and for coordinating trading strategies with other banks.
Regulators based their findings, in part, on transcripts of bank traders communicating in online chat rooms, which emerged more than a year ago.
FIRST VOLCKER RULE TRADING INFRACTION. What makes this settlement significant is the fact that Deutsche Bank is the first big bank to be fined by the Federal Reserve under the Volcker Rule’s proprietary trading ban. Big bank traders are now restricted to assisting clients in buying or selling securities, and may derive profits from spreads or price moves – although differentiating between proprietary trading and market making can be difficult.
ANOTHER REGULATORY INVESTIGATION. Deutsche Bank faces ongoing investigation by the New York State Department of Financial Services (NYSDFS) which has been looking into whether the bank used algorithms on trading platforms to front-run or otherwise take advantage of clients.