By Rachel Witkowski

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WASHINGTON -- Deutsche Bank AG has agreed to pay $157 million in penalties to the Federal Reserve over alleged violations of foreign-exchange trading rules.

The Fed on Thursday said Deutsche Bank failed to detect that its foreign-exchange traders were using electronic chatrooms to talk about trading positions with competitors. The bank also violated the Volcker rule, which prohibits banks from proprietary trading, according to the Fed.

Deutsche Bank has been ordered to pay $156.6 million in fines, address the violations and cooperate with any investigations of individuals involved in the foreign-exchange trades.

The settlement is related to a broader investigation of several global banks that were accused of colluding to move foreign-currency rates for their own benefit.

--Aruna Viswanatha contributed to this article.

(END) Dow Jones Newswires

April 20, 2017 16:22 ET (20:22 GMT)

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