subscribe to our newsletter
Bank hit with billions in fines

Bank hit with billions in fines

Authorities from the United Kingdom and the United States have issued Deutsche Bank a number of fines totalling US$2.5 billion for manipulating its interbank lending rates.

A statement by the UK regulator, the Financial Conduct Authority (FCA), said Deutsche Bank had been found tampering with its LIBOR and EURIBOR (collectively known as IBOR) submissions across all major currencies between 2005 and 2010.

As a result of this breach, the regulator fined the bank £227 million (US$340 million), with included further penalties for misleading the FCA during investigations.

The regulator explained that 29 staff members were involved in the bank's breaches, including managers, traders and submitters based in London, Frankfurt, Tokyo and New York.

The FCA added it had also worked closely with authorities in the United States during its investigations, which led to the bank being issued further heavy financial penalties.

“The Commodities Futures Trading Commission has imposed a financial penalty of US$800 million, the US Department of Justice has imposed a financial penalty of US$775 million and the New York Department of Financial Services has imposed a fine of US$600 million,” the statement said.

Commenting on the action taken against the bank, FCA acting director of enforcement and market oversight Georgina Philippou said the case “stands out” for its seriousness and the duration of the breaches.

“One division at Deutsche Bank had a culture of generating profits without proper regard to the integrity of the market. This wasn’t limited to a few individuals but, on certain desks, it appeared deeply ingrained.

“Deutsche Bank’s failings were compounded by them repeatedly misleading us. The bank took far too long to produce vital documents and it moved far too slowly to fix relevant systems and controls,” Ms Philippou said.

 

Bank hit with billions in fines
mortgagebusiness logo

Latest News

The corporate regulator has issued guidance in relation to its oversight of a newly formed external dispute resolutions body, the Australian...

The federal government has announced the appointment of the inaugural chair of the National Housing Finance and Investment Corporation. ...

An alternative funder of residential property developments is confident that Australia’s banks will never again offer mezzanine funding fo...

Promoted Stories

podcast

LATEST PODCAST: How the market has changed in the last 25 years, royal commission hearings, broker advocacy

Do you expect access to credit to get harder this year?