Multiple media outlets are reporting Deutsche Bank will resolve the multi-year investigation of the UK FCA, US DOJ, CFTC and New York’s DFS later this month with a settlement totaling more than $1.5 billion in penalties and a guilty plea by a U.K. subsidiary, Deutsche Bank Group Services.
Government regulators have been investigating Libor manipulation by investment banks since at least 2012. So far, the banks have been sanctioned more than $4 billion as a result of their rigging of the short term interest rate benchmark. Barclays, UBS AG, Royal Bank of Scotland, Rabobank and Lloyds have all settled investigations into their misconduct.
Deutsche Bank would be the first settlement of this type to also resolve an investigation by the New York Department of Financial Services. DB has a New York state charter, which brings it within the perview of New York State’s financial regulator. DFS is also investigating Deutsche Bank for manipulation of foreign exchange rates as well as violations of U.S. economic sanctions.
Last fall, Barclays pulled out of negotiations over currency manipulation with the CFTC and other global regulators because of problems reaching a resolution with NYDFS. The state agency is reported to have aggressively pushed for large monetary penalties and other sanctions, such as revoked operating licenses or criminal convictions.
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