Deutsche Bank has agreed to pay a combined $156.6m in penalties to Federal Reserve for violating foreign exchange norms and failing abide by to maintain Volcker Rule.
The lender will pay a $136.9m fine for unsafe practices in the foreign exchange (FX) markets, and a $19.7m fine for failing to maintain Volcker rule compliance program prior to 30 March 2016.
The regulator in its investigation found that the lender failed to detect and address that its traders used electronic chatrooms to communicate with competitors about their trading positions.
Federal Reserve said: “Separately, the Board found gaps in key aspects of Deutsche Bank’s compliance program for the Volcker rule, which generally prohibits insured depository institutions and any company affiliated with an insured depository institution from engaging in proprietary trading and from acquiring or retaining ownership interests in, sponsoring, or having certain relationships with a hedge fund or private equity fund.
“The Board also found that the firm failed to properly undertake certain required analyses concerning its permitted market-making related activities.”