Deutsche Bank will pay record $2.5 billion fine for rate-rigging
Deutsche Bank will pay a $2.5 billion settlement involving the manipulation of the benchmark interest rates, New York financial regulators announced Thursday. Deutsche will fire employees who were involved in the misconduct and install an independent monitor for New York state banking law violations.
Deutsche Bank will pay a $2.5 billion settlement involving the manipulation of the benchmark interest rates, New York financial regulators announced Thursday. Deutsche will fire employees who were involved in the misconduct and install an independent monitor for New York state banking law violations.
New York state financial regulators say聽Deutsche聽Bank聽will pay a $2.5 billion settlement involving the manipulation of the benchmark interest rates.
Financial Services Superintendent Benjamin Lawsky announced Thursday morning that聽Deutsche聽will fire employees who were involved in the misconduct and install an independent monitor for New York state聽banking聽law violations.
"Deutsche Bank employees engaged in a widespread effort to manipulate benchmark interest rates for financial gain," Lawsky said 聽in the DFS announcemnent. "While a number of the employees involved in misconduct have already left the bank, those that remain are being terminated or banned from the New York banking system. We must remember that markets do not just manipulate themselves: It takes deliberate wrongdoing by individuals."
Lawsky says the penalty includes $600 million for the state, $800 million to the Commodities Futures Trading Commission, $775 million to the U.S. Department of Justice, and about $340 million to the United Kingdom's Financial Conduct Authority.
The full statement from the NYDFS is below:聽
Lawsky says the violations were committed from 2005 through 2009 by聽Deutsche聽Bank聽traders. The manipulations included the London Interbank Offered Rate, a benchmark interest rate used in financial markets around the world.