Deutsche Bank to pay $425M to settle New York probe

Deutsche (DOY'-chuh) Bank will pay $425 million to settle an investigation by a New York state regulator into a $10 billion money laundering scheme.

The Department of Financial Services said Monday Deutsche also must hire an independent monitor as part of a consent order for violations of laws involving a "mirror trading" scheme.

The regulator found that parties in the bank's Moscow branch purchased Russian stocks in rubles and another party sold the identical stock in the same price and quantity in U.S. dollars through the bank's London office. It says the trades showed no "legitimate economic rationale."

The regulator says Deutsche missed numerous opportunities to detect the scheme due to "extensive compliance failures."

Deutsche Bank AG is based in Frankfurt, Germany. It says it continues to cooperate with authorities.