Deutsche Bank AG has been slapped with a total of US$156.6 million in civil penalties following the U.S. Federal Reserve Board investigations that found the bank had violated foreign exchanges (FX) rules and the Volcker Rule’s restrictions on risky, speculative bets.
The Fed fined Deutsche Bank US$136.9 million for deficiencies in the bank’s oversight of FX traders, some of whom have allegedly participated in chat rooms to disclose their trading positions and discussing strategies with competitors.
In addition, the Fed fined Deutsche Bank US$19.7-million fine for “gaps” in its compliance program for the Volcker Rule, which bans federally insured banks from engaging in proprietary trading.
The firm has also been asked to co-operate with its investigation of individuals linked to the charges.
In addition, the Fed is requiring the bank to improve senior-management oversight and controls related to its compliance with Volcker rule requirements.
This is the latest sanction levelled against Deutsche Bank exposing failings within its operations. In January, the U.K. Financial Conduct Authority hit the firm with a record penalty of £163 million for inadequate anti-money laundering controls.