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Deutsche Bank fined for sham Russian trades

Tuesday, January 31, 2017 - 01:43

Deutsche Bank has agreed to pay $630 million in fines for organising $10 billion in sham trades that could have been used to launder money out of Russia. As Sonia Legg reports, it's the latest in a string of penalties that have hammered the German lender's finances.

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Much like buses - you wait ages for one and several arrive at the same time. That's the way it may seem at Deutsche Bank. It's just been thumped with two more fines totalling $630 million. US and UK regulators say the German bank failed to prevent around $10 billion in suspicious trades being laundered out of Russia. The so-called mirror trades were used between Deutsche's offices in New York, London and Moscow. (SOUNDBITE) (English) CRAIG ERLAM, SENIOR MARKETS ANALYST, OANDA, SAYING: "I think in the grand scheme of things the fines are relatively small. What is a major concern for Deutsche Bank is that it is just another in a long list of practices which the bank has undertaken which has left a very bad taste in people's mouths and resulted in a long list of quite sizeable fines." For the UK's part, Britain's Financial Conduct Authority said the bank's actions were "highly suggestive of financial crime." It's $204 million fine was its largest financial penalty yet for anti money-laundering control failings. But at least there was no new talk of possible bailouts. There was ahead of the last $7.2 billion agreement with the U.S. Department of Justice for misselling mortgage-backed securities (SOUNDBITE) (English) CRAIG ERLAM, SENIOR MARKETS ANALYST, OANDA, SAYING: "We will only see a need for a bailout if there's a run on the bank from investors or alternatively if further cases arise that eat into the available cash flow that the bank has. Right now I think it is in a safe place, or a safe-ish place." In early trade Deutsche's shares rose 1.5 percent to the top of Germany's blue-chip index. The bank is due to report fourth-quarter results on Thursday.

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Deutsche Bank fined for sham Russian trades

Tuesday, January 31, 2017 - 01:43