The Federal Reserve Board on Thursday 20 August 2026 announced a written agreement with SouthPoint Bancshares, Inc. of Birmingham, Alabama, and the termination of a 2017 cease and desist order against Deutsche Bank AG and its US operations relating to foreign exchange trading.
The SouthPoint agreement, dated 14 August 2026, was entered into with the Federal Reserve Bank of Atlanta and the Alabama State Banking Department. The Deutsche Bank order, dated 20 April 2017 and covering Deutsche Bank AG, DB USA Corporation and Deutsche Bank AG New York Branch, was terminated on 13 August 2026.
SOUTHPOINT AGREEMENT
The agreement follows an offsite review by the Atlanta Fed that identified certain deficiencies at the holding company. Its subsidiary, SouthPoint Bank, a state-chartered nonmember bank, has been subject to a consent order with the Federal Deposit Insurance Corporation and the Alabama State Banking Department since 4 November 2025.
Under the agreement, SouthPoint must serve as a source of financial and managerial strength to the bank and, within 60 days, submit an acceptable written capital plan and cash-flow projections for 2026. It may not pay dividends, repurchase shares, make interest payments on subordinated debentures or incur, increase or guarantee debt without prior written approval from its supervisors and the Fed’s Director of Supervision and Regulation. It must also file quarterly progress reports.
DEUTSCHE BANK FX ORDER
The 2017 order was issued alongside a $136.9 million civil money penalty for unsafe and unsound practices in foreign exchange markets. The Board found deficiencies in Deutsche Bank’s oversight of, and internal controls over, its FX traders, and said the firm had failed to detect and address traders’ use of electronic chatrooms to communicate with competitors about their trading positions. The order required the bank to improve senior management oversight and controls relating to its FX trading.
At the same time, the Fed fined Deutsche Bank $19.7 million for failing to maintain an adequate Volcker rule compliance programme.