Powered by MOMENTUM MEDIA
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.

Advertisement
Advertisement

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

 

Latest News

The embattled wealth giant has confirmed that its statutory net profit fell by $820 million in 2018, due to costs associated with the royal ...

The non-major bank’s net profit after tax has dropped by 4.7 per cent, coinciding with weaker home lending performance. ...

Regulatory sandboxes may not be the answer for regulating cross-border fintechs, a new report has suggested. ...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The aftermath of the final royal commission report

Is enough being done to ensure responsible lending?