Translated material
Deutsche Bank will pay $2.5 billion for rate manipulation
Deutsche Bank has agreed to pay a $2.5 billion fine to US and European regulators as part of a pre-trial agreement in the case of manipulations with interbank LIBOR and EURIBOR rates.
Deutsche Bank was sentenced to such a large fine, among other things, for trying to misinform regulators and interfere with the investigation of the case.
Deutsche Bank said in a statement that the bank "deeply regrets" the incident. Deutsche Bank also said it had "fired or sanctioned employees involved in rate manipulation" and significantly improved its internal controls to prevent similar incidents from occurring in the future.
American regulators, in turn, said that the bank should fire seven more employees involved in the manipulation. Deutsche Bank has not yet commented on this requirement.
This is the largest amount of the fine ever collected in such cases (engl.lang.).
- The LIBOR (London Interbank Offered Rate) and EURIBOR (European Interbank Offered Rate) investigation was launched in 2011.
- LIBOR and EURIBOR are calculated based on rate information provided by major financial institutions. It turned out that banks showed artificially high or low rates in order to increase profits from transactions or to give the impression that they are more creditworthy than they really are.
- Initially, American regulators were involved in the investigation of the case, then colleagues from the UK, the European Union, Japan and Switzerland joined them.
- Among the largest banks that were accused of fraud with rates were German Deutsche Bank, British Barclays and Royal Bank of Scotland, French Societe Generale, as well as American JPMorgan Chase and Citigroup.