U.S. CFTC Fines Deutsche Bank $3B Over Customer Fund Flaws

Politics Reuters

The U.S. Commodity Futures Trading Commission on Monday ordered Deutsche Bank to pay a $3 million fine over charges that it had failed to properly invest customer funds and had made other mistakes in the process.

Continue Reading Below

The bank also failed to keep accurate financial reports, though none of the violations resulted in any customer losses, according to the CFTC, which oversees derivatives trading.

"(Deutsche) failed to accurately compute the amount of customer funds on deposit," over the period of June 18, 2012 to August 15, 2012, the CFTC said.

Deutsche Bank neither denied nor admitted the regulator's findings, a court order said.

Deutsche said the settlement was part of "our ongoing effort to further strengthen our systems and controls," in which it was investing 1 billion euros ($1.23 billion).

In July, the Federal Reserve Bank of New York criticized Deutsche Bank's U.S. operations for "inaccurate and unreliable" reporting, weak technology and inadequate auditing.

Continue Reading Below

As a result, the bank said it was hiring 500 people in the United States to deal with the problems.

In recent months, it made two senior compliance and information technology hires from rival Goldman Sachs. In October, it attracted Jan Ford as head of compliance for the Americas, after nabbing Richard Shannon as chief information officer for the Americas in August.

($1 = 0.8163 euros)

(Reporting by Douwe Miedema; Editing by Susan Heavey)