Deutsche Bank AG will be the subject of a fine applied by the Federal Reserve and New York’s Department of Financial Services, according to Bloomberg, due to its conduct in the foreign exchange market.
The German bank declared this Monday that the U.S. Department of Justice already closed a criminal inquiry into their currency-trading activities, without any previous action. Also, it seems that the regulators are already in the final stages of their own reviews, in order to determine what the consequences will be.
The U.S. Federal Reserve has already finished its investigation, while the New York Department of Financial Services is also very close to finishing its own probe.
Apparently, the regulatory reviews of currency trades aren’t the only legal challenges Deutsche Bank has been through, in the U.S., lately! The bank also paid important amounts of money, in fines, after selling some shady residential mortgage securities, besides their allegations of interest-rate manipulation.
The bank’s CEO, John Cryan, announced that they’re currently dealing with a $8.6 billion stock sale, as well as a plan to return the institution to a “modest growth mode.”
As for the bank shares, they rose 4.8 percent today, reaching 16.1 euros, in Frankfrut. This raise will definitely boost Deutsche Bank’s common equity Tier 1 ratio, which is a very important sign of financial strength. To be more specific, we’re talking about 14.1 percent, from 11.9, at the end of 2016.
Until date, Deutsche Bank AG is the biggest participant in the foreign exchange market which managed to avoid Justice Department action. However, they still need to content with a civil suit, against 15 other banks in the United States.