Powered by MOMENTUM MEDIA
subscribe to our newsletter

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.

Advertisement
Advertisement

“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.

 

PROMOTED CONTENT


Bank hit with billions in fines
mortgagebusiness

Latest News

The RBA has cautioned lenders and the financial sector against “excessive risk-taking” amid rising asset prices, including looser lendin...

First home buyer loans hit its second highest level in over a decade in February, but levels are expecting to drop as house prices continue ...

A not-for-profit organisation has announced a new grant funding round for social and affordable housing projects in the Northern Territory a...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Tackling the home deposit challenge

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.