US: Deutsche Bank to pay $2.5 billion for Libor rate violations

Deutsche Bank will pay fines totaling $2.5 billion, and must terminate and ban certain employees who engaged in interest-rate rigging, New York State’s superintendent of financial services announced Thursday.

The penalty will see the bank pay $600 million to the New York State Department of Financial Services, $800 million to the Commodities Futures Trading Commission, $775 million to the Justice Department and £227 million ( to the UK’s Financial Conduct Authority.

“Deutsche Bank employees engaged in a widespread effort to manipulate benchmark interest rates for financial gain,” Superintendent Benjamin Lawsky said in a statement.

As part of the settlement, Deutsche Bank’s London-based subsidiary pleaded guilty to criminal wire fraud and the parent group entered into a deferred prosecution agreement to settle U.S. wire fraud and antitrust charges. U.S. authorities said independent monitors would be installed.

Full Content: The New York Times

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