Deutsche Bank Is First Bank Busted for Breaking Volcker Rule
- Fed levies $157 million in fines for lax oversight of traders
- In two probes, regulator faults oversight of trading and chats
Deutsche Bank Busted by Fed for Breaking Volcker Rule
This article is for subscribers only.
Deutsche Bank AG was hit with the Federal Reserve’s first major fine for failing to ensure traders abide by the Volcker Rule’s ban on risky market bets -- and will also pay even more for letting currency desks chat online with competitors, allegedly revealing positions.
The simultaneous sanctions, totaling almost $157 million, fault lax oversight of traders that persisted into last year. The company -- which raised $8.5 billion from investors this month to recapitalize -- admitted to the Fed in March 2016 that it still lacked adequate systems for keeping tabs on dealings that might run afoul of the Volcker ban.