Deutsche Bank Fined $2.5 bln for Interest Rate Benchmarks Manipulation
Victor Golovtchenko, 23 April 2015
Superintendent of Financial Services Benjamin M. Lawsky, announced today that Deutsche Bank will part with $2.5 billion to settle litigation costs related to manipulation of various interest rate benchmarks.
This is the biggest LIBOR investigations related fine to date, and surpasses Swiss bank’s Credit Suisse record. Besides installing an independent monitor for New York Banking Law violations, the largest German investment bank will also have to terminate and ban certain employees.
The benchmark interest rates which the fines are related to include the London Interbank Offered Bank (LIBOR), the Euro Interbank Offered Rate (EURIBOR) and Euroyen Tokyo Interbank Offered Rate (TIBOR).
The $2.5 billion total is distributed among a number of global regulators. Deutsche Bank will pay $600 million to the New York State Department of Financial Services (NYDFS), $800 million to the U.S. Commodities Futures Trading Commission (CFTC), $775 million to the U.S. Department of Justice (DOJ) and £227 million (approximately $340 million) to the United Kingdom’s Financial Conduct Authority (FCA).
