WEB Notes: A fine of $157 million? You have got to be kidding me? How much money did they make off of their crime? Far more than $157 million no doubt. They will do this all day for that type of “penalty”. That may sound like a lot of money to you, but it is chump change to these people.
Another day, another fine for the bank that no matter what, just can’t play by the rules.
On Thursday, the Federal Reserve fined Deutsche Bank $156.6 million for violating foreign exchange rules and running afoul of the Volcker Rule, suggesting it was likely trading FX out of its own account in violation of Dodd-Frank.
In levying the FX fine on Deutsche Bank, the Fed said it found “deficiencies in the firm’s oversight of, and internal controls over, FX traders who buy and sell U.S. dollars and foreign currencies for the organization’s own accounts and for customers.”
Additionally, and stunningly, years after it became clear that FX chat rooms are about the worst possible idea for currency traders, the Fed said Deutsche Bank failed to detect and address that its traders were still “using electronic chatrooms to communicate with competitors about their trading positions.” The order requires Deutsche Bank to improve its senior management oversight and controls relating to the firm’s FX trading.