Deutsche Bank AG is expected to be fined by the Federal Reserve and New York’s Department of Financial Services for its conduct in the foreign exchange market, a person familiar with the matter said.
The German lender said Monday that the U.S. Justice Department had closed a criminal inquiry into its currency-trading activities without action.
But regulators are in the final stages of their own reviews of that conduct to determine what fines, if any, the bank should pay, the person said. The Federal Reserve has finished its investigation, the person said, and the New York bank regulator is close to wrapping up its own probe.
In the past two years, it has struck settlements with the Justice Department over allegations of interest-rate manipulation and its sale of toxic mortgage securities. Separately, it reached settlements with the DFS over sanctions violations and “mirror trading” that moved billions of dollars out of Russia. The bank also paid a $2.5 million civil penalty to the Commodity Futures Trading Commission for failing to report its swaps transactions.
While the bank no longer has to contend with the Justice Department’s foreign exchange probe, the U.S. attorney’s office in Manhattan is continuing its investigation of sanctions violations and the Russian mirror trading. Dawn Dearden, a spokeswoman for the U.S. attorney’s office in Manhattan, has declined to comment on the status of its investigation.

source: bloomberg.com