Deutsche Bank was fined $12.5m by an industry-backed U.S. regulator for failing to prevent the dissemination of non-public information over an internal speaker system.
Bloomberg News reports that Deutsche Bank Securities broadcasted confidential information through an internal speaker system known as “squawk boxes” without supervising certain employees’ access, according to a statement Monday from the Financial Industry Regulatory Authority. The bank repeatedly ignored red flags for years that its monitoring system was inadequate, Finra said.
“Deutsche Bank’s disregard of years of red flags including internal audit findings, risk assessments and compliance recommendations was particularly egregious given the risk that material nonpublic information could be communicated over squawk boxes,” said Brad Bennett, Finra’s head of enforcement.
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