Deutsche Bank Fined For Manipulating the Forex Market

0
976
Deutsche Bank Fined For Manipulating the Forex Market
One of the world's top banks is in trouble again

The German banking group Deutsche Bank was fined $205 million by American officials on June 20. The fine was part of an extended settlement as the bank had been manipulating the forex market in recent time. This marks one of the largest fines that Deutsche Bank has been subjected to, although it is not the most valuable that the bank has had to spend.

The fine was levied by the New York State Department of Financial Services. This marks the latest concern surrounding problems relating to the market and how it was growing or trying to move forward.

The group stated that Deutsche Bank illegally organized forex trading functions with other financial groups. The work was done to improve upon the profits that the bank was taking in. Traders got into multiple chat rooms to share information on currency prices and on private information involved with those currencies.

The fine comes amid an extensive investigation to find details on Deutsche Bank’s activities. The investigation went on from 2007 to 2013. The ongoing actions of the bank and other parties were identified to recognize what had been going on with the bank and how it was handling currencies. This included cases where difficult issues were handled between the bank and groups in other countries that were trading currencies.

The DFS found that the actions that were utilized by Deutsche Bank included many illegal actions utilized by an extended number of employees, although the supervisors at the business were making a major impact. However, the DFS was also appreciative of the cooperation that the bank put in over handling the investigation.

Some actions were utilized following the fine being laid out. Deutsche Bank agreed to a consent order and would go through an extended audit program to ensure the bank is monitored accordingly. Part of this is to ensure there is a sense of compliance within the market over how the organization might work.

The fine levied upon Deutsche Bank is one of the largest to have been imposed in the market in recent time. The move was designed to ensure that there are no future problems over time regarding the bank’s efforts to manage the forex industry.

This is not the first time that Deutsche Bank had experienced a significant fine. In early 2017, the bank was fined $245 million over the use of illegal trades in Russia. However, those trades were conducted under the American branch of the group. In that same year, Deutsche Bank also paid $7.2 billion in a settlement with the Department of Justice following the sale of toxic mortgage investments. The issues caused the company’s stock value to decline, although it has been on a slight rebound since then.

The ongoing litigation issues that Deutsche Bank had been experiencing caused the bank to reorganize its plans. New trade execution records are being utilized to attempt to find help for managing different functions for handling trades. General co-operation is being utilized among multiple departments within the business to prevent issues from coming about in the future.

Click To Join Our Community Telegram Group

Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments