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Stories of Interest
- SEC Adopts Statement and Interpretive Guidance on Public Company Cybersecurity Disclosures
- SEC Charges Former Bitcoin Exchange and Its Founder With Fraud
- JPMorgan Chase to Replace NYC Headquarters with 70-Story Skyscraper
- Citigroup Raises CEO Corbat's Pay 48% to $23Mn
- Should Congress Create a Crypto-Cop?
- JPMorgan Weighs Buying an Exchange-Traded Funds Firm
- Hey, Goldman Sachs: Wanna Buy BNY Mellon?
- SEC Order Rejecting Acquisition of Chicago Stock Exchange (CSX) by Chinese-Baesd Company
- Kyle Moffatt Named Chief Accountant in SEC CorpFinance
- SEC Suspends Trading in 3 Issuers Claiming Involvement in Cryptocurrency and Blockchain Technology
- Karen Garnett, Assoc. Director of SEC CorpFinance, to Leave After 23 Years of Service
- Louisiana Adviser Barred for Hiding Losses from Investors
- Connecticut HF Manager Illegally Diverted Investor Money - Now Owes Nearly $13Mn
- White House Cleaning House of Advisors Without Full Security Clearance
- Goldman Projects 30% Growth in Wealth Management Advisor Force
- Whistleblower Alleges Manipulation of CBOE Volatility Index
- FINRA Looking Into VIX (CBOE Volatility Index) Manipulation: WSJ
- Atlanta-Area Resident Charged with Misusing Investor Funds - SEC
- FINRA Announces 2018 West Region Networking Seminar
- Alberto Arevalo, Associate Director in Office of International Affairs, to Retire From SEC
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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.