WASHINGTON - The US Federal Reserve on Thursday ordered German banking giant Deutsche Bank to pay more than $150-million in civil fines for bad foreign-exchange practices and lax oversight.
Deutsche Bank's US unit must pay $136.9 million for "unsafe and unsound practices" in the foreign-exchange markets, the Fed, which regulates the US banking sector, said in a statement.
The firm "failed to detect and address that its traders used electronic chatrooms to communicate with competitors about their trading positions," the central bank said.
The Fed also imposed a $19.7 million fine on the firm for failure to maintain an adequate compliance program for the Volcker rule, whichprohibits banks from making certain kinds of investments with their own accounts.
It ordered Deutsche Bank, by far the largest bank in Germany, Europe's biggest economy, to improve its oversight and controls relating to forex trading and the Volcker rule.