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Regulators Would Prefer That Deutsche Bankers Not Disclose Nonpublic Information Via Megaphone At The Office

What's German for "Whisper, dummies!"?

It turns out that even German banks have loud trading floors, but apparently the German-iest of banks has a trading floor where everyone is shouting secrets.


From BI:

Deutsche Bank allowed potentially confidential research and trading information to be broadcast over internal speakers, according to the Financial Industry Regulatory Authority, or Finra.

That scheiße aint' cool, Deutsche Bank. To make it worse, it seems like FINRA has put DB on notice about this a few times, warning the bank that it needed to stop communicating nonpublic info by shouting it through squawk boxes. Deutsche promptly did "nichts."

Per the FINRA statement:

FINRA found that Deutsche Bank was aware that hoots involving research and trading might contain confidential, price-sensitive information, and that there was a risk that material non-public information could be communicated over them. However, for several years, the firm repeatedly ignored red flags indicating that its supervision was inadequate, including internal audit findings and recommendations, multiple internal warnings from members of the firm's compliance department, and internal risk assessments. Despite these red flags, the firm still failed to implement reasonable written policies, procedures and systems governing who should have access to the hoot information, how the employees should handle hoot information, and how supervisors should supervise employees to ensure compliance, and protection of confidential and material nonpublic information potentially communicated over the hoots.

Deutsche Bank has not admitted to any wrongdoing but the fine does make one wonder what else DBers are shouting in what they seem to assume is the total safety of their trading desks. Are they calling out "I DID manipulate LIBOR!" or "They're sending me to Dublin!"? Maybe if you put your ear to a deutches squawk box you can hear a desperate voice scream out into the darkness "My name is John Cryan and I HATE MY JOB!!!"

Anyway, keep it the fuck down over there, Deutsch Bank.

Deutsche Bank got fined for literally broadcasting potentially confidential information over loudspeakers [BI]
FINRA Fines Deutsche Bank Securities Inc. $12.5 Million for Inadequate Supervision of Internal Communications [finra .org]


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