Deutsche Bank Agrees to Pay $205 Mln Fine for Unlawful Foreign Exchange Trading

Deutsche Bank (DB) has agreed to pay a fine of $205 million as part of a consent order with the New York State Department of Financial Services for unlawful foreign exchange trading.

The department’s investigations revealed that the bank’s traders and sales staff improperly coordinated trading activity through online chat rooms, improperly shared confidential customer information, traded aggressively to skew prices, and misled customers to benefit the bank.

It was also revealed that for certain time periods, limited elements of the bank’s electronic trading platforms had the ability to improperly disadvantage customers and improperly affect markets, when certain applications did not perform as intended.

Deutsche Bank has pledged to perform remedial actions to prevent the conduct from recurring and will submit plans to the department to improve senior management oversight of the company’s compliance with state laws and regulations relating to the company’s foreign exchange trading business.

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