Judge Orders Monitor for Deutsche Bank

MANHATTAN (CN) — An independent monitor must keep watch over Deutsche Bank after a five-day systems outage revealed the German lender to be unprepared for such disasters, a federal judge ruled Thursday.
The Commodity Futures Trading Commission, empowered under the Dodd-Frank Wall Street Reform and Consumer Protection Act to bring more transparency to swap dealers, imposed a $2.5 million fine on Deutsche Bank a little more than a year ago for its failure “to properly report its swaps transactions from in or about January 2013 until July 2015.”
The agency’s order forced the bank to comply with remediation efforts, including beefing up reporting requirements and submitting periodic updates.
Then, Deutsche Bank’s swap-data reporting system crashed on April 16.
The CFTC responded with a Manhattan Federal Court lawsuit claiming the incident amplified old problems and created news ones.
“Deutsche Bank’s subsequent efforts to end the system outage repeatedly exacerbated existing reporting problems and often led to the discovery or creation of new reporting problems, many of which violate a previous CFTC order,” the complaint said.
U.S. District Judge William Pauley called the consequence “significant” for the markets in a 5-page ruling published Thursday.

Read on.

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