Deutsche Bank has been fined a total of $156.6 million for Volcker rule compliance failures and unsafe practices in foreign exchange (FX) markets.
The German bank was fined $136.9 million after the Federal Reserve found severe deficiencies in the oversight of FX traders buying and selling US dollars and foreign currencies for the firm’s own accounts and for clients.
The Federal Reserve said Deutsche Bank did not detect or address the fact its traders used chartrooms to communicate with competitors about their trading positions.
Deutsche Bank was also fined $19.7 million for failing to maintain an adequate Volcker rule compliance program prior to March last year.
It failed to undertake the required analyses of permitted market making activities and had severe gaps within its Volcker rule compliance strategy.
The authority has ordered the bank to improve its senior management oversight related to FX trading and Volcker rule compliance.
Deutsche Bank is also required cooperate in any investigation of the individuals involved in the FX enforcement action and it is prohibited from re-employing or engaging with individuals who were involved in the incident.