Deutsche Bank to pay $12.5 million fine for mishandling squawk box information
- Oil rallies over $50 despite OPEC output cut doubts
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- Universal Health (UHS) Disputes and Denies Conclusions in BuzzFeed Article
- Perrigo (PRGO) to Restructure BCH Omega Pharma Belgium Business; Will Terminate EuroGenerics Agreement
A logo of a branch of Germany's Deutsche Bank is seen in Cologne, Germany, July 18, 2016. REUTERS/Wolfgang Rattay/File Photo - RTSK2KV
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
NEW YORK (Reuters) - The Financial Industry Regulatory Authority fined Deutsche Bank Securities Inc $12.5 million on Monday for its failure to supervise which employees had access to confidential information broadcast over internal "squawk box" speakers.
The bank's internal policies failed to ensure that sensitive information meant only for research and trading employees was not also heard by private client services employees, including brokers and financial advisers, according to a FINRA statement.
FINRA did not say any brokers had misused the confidential information, which could include news about major client trades that could affect stock prices. But the watchdog accused the bank of ignoring warnings from its own compliance department that its policies and supervisors did not adequately control who heard the "squawks," according to the settlement.
Deutsche Bank spokeswoman Amanda Williams declined to comment.
The bank did not admit or deny the charges, which applied to a period spanning 2008 to 2014. In addition to paying the fine, Deutsche agreed to implement stricter supervision of employees and written procedures to protect nonpublic information from being shared on squawk boxes.
This is the largest fine the Wall Street watchdog has handed down in a squawk box case. The last large fine levied to a bank in a similar matter occurred in 2009 when Merrill Lynch paid $7 million to resolve issues related to several brokers and traders who misused squawks to generate illegal profits.
(Reporting By Elizabeth Dilts; Editing by Jonathan Oatis)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Ladder Capital (LADR) Prices 10M Share Secondary Stock Offering for Proceeds of ~$136M
- Trump's choice of China envoy a positive sign for ties, Xinhua says
- China's Fujian drops Aixtron bid after Obama blocks deal
Create E-mail Alert Related CategoriesReuters
Related EntitiesDeutsche Bank, Merrill Lynch
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!