The US Federal Reserve in an annual regulatory assessment noted that Deutsche Bank had not improved its risk management practices despite being under confidential agreements with the Fed. The Fed privately warned the German lender that its compliance programs are not up to the mark. A source said that the Fed’s assessment letter included bank executives bracing for potential sanctions with the possibility of a large fine. Deutsche has had a notorious history regarding compliance with Bloomberg noting that it paid a $137mn settlement over allegations that traders rigged currency benchmarks and a $41mn penalty for money-laundering vulnerabilities.
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