Deutsche Bank to Pay $205M for Forex Trading Manipulation
Zacks, 21 June 2018
Deutsche BankDB has been imposed a penalty of $205 million by the New York regulator for improper foreign exchange trading activities it conducted in the period between 2008 and 2013.
Lately, Deutsche Bank has been cutting back its failing operations globally with a view to save itself from a serious downturn. However, it still remains exposed to a horde of investigations and legal matters that might dent its financials.
In its investigations, the Department of Financial Services (“DFS”) found that the bank’s employees had made improper use of online chat rooms where they shared confidential information of clients, thus misleading customers. Further, the bank has been alleged of attempting to manipulate foreign exchange currency prices or benchmark rates.
The DFS stated that through these improper activities, Deutsche Bank’s traders were successful in lowering competition in the market, and thus pocketed higher profits.
