WASHINGTON (Reuters) - The U.S. Federal Reserve on Thursday fined Deutsche Bank AG $156.6 million for violating foreign exchange rules and running afoul of the Volcker Rule.
The German bank failed to detect and halt its traders from using chat rooms to communicate with competitors, the Fed said in a statement.
Central bank officials are “requiring the firm to cooperate in any investigation of the individuals involved in the conduct underlying the FX enforcement,” according to the statement.
In a statement, the bank said, “we are pleased to resolve these civil enforcement matters with the Federal Reserve.”
Separately, the Fed said it found gaps in Deutsche Bank compliance with the Volcker Rule, which prohibits government-protected banks from engaging in proprietary trading.
The foreign exchange violations were discovered during a four-year-old review of dealings at the bank, the Fed said in a consent order reached with Deutsche Bank.
The bank agreed to improve its oversight of foreign exchange trades as part of the agreement with the Fed.