FINRA Levies $12.5 M Fine on Deutsche Bank for Inadequate Supervision over ‘hoots’
Posted: Sun Aug 07, 2016 3:42 pm
The Financial Industry Regulatory Authority (FINRA), the largest independent regulator for all securities firms doing business in the United States, said on Monday that it has fined the Deutsche Bank AG’s securities arm, Deutsche Bank Securities Inc., $12.5 million over potential dissemination of confidential information over internal speakers commonly known as ‘squawk boxes.’
Despite multiple red flags, including internal warnings from the lender’s compliance department and internal risk assessments, the bank ignored for years establishing an adequate supervision over registered representatives’ access to hoots or their communications with customers regarding hoots. In addition, the supervision over internal audit findings and recommendations was inadequate, ... (read more)