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Deutsche Bank gets €725 million Libor fine

Germany's biggest bank has been fined a record €725 million for rigging interest rates. It was one of several banks fined a total of €1.7 billion by the European Union Commission on Wednesday.

Deutsche Bank gets €725 million Libor fine
Photo: DPA

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Deutsche Bank was fined the largest amount by the commission which handed down a decision in the Euribor and Libor interest rigging scandal, involving the Royal Bank of Scotland, Citi Group, Société Générale and JPMorgan

Barclays and UBS were spared fines after alerting authorities to the scandal which saw the banks act as a cartel to rig the interest rate benchmarks, Euribor and Libor..

The German banks fine was broken down into one of €465m for taking part in euro market rigging and another €260 million for that of the Japanese Yen, the Süddeutsche Zeitung reported.

The money will come out of the €4 billion Deutsche Bank has set aside for paying fines.

“The decision today is a clear signal that the commission is resolute in its fight against cartels in the finance sector,” said EU commissioner responsible for competition Joachin Almunia.

As well as Deutsche Bank, France's Société Générale must pay €466 million and the Royal Bank of Scotland €391 million. 

READ MORE: Deutsche Bank profits collapse by 94 percent

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DEUTSCHE BANK

Deutsche Bank set ‘to cut ties with Trump’

Deutsche Bank will cease its longstanding relationship with outgoing US president Donald Trump, The New York Times reported on Tuesday.

Deutsche Bank set 'to cut ties with Trump'
Deutsche Bank's headquarters in Frankfurt. Photo: DPA

Deutsche Bank was Trump's primary lender for two decades, and he owes the institution more than $300 million, according to the newspaper, which cited an unnamed source as saying the German lender “has decided not to do business with Mr. Trump or his company in the future.”

Deutsche Bank declined to comment to AFP.

The move comes on the heels of last week's violent attack on the US Capitol by Trump supporters at the president's incitement, and follows steps taken by other companies to cut ties with Trump and his businesses.

READ ALSO: Trump under investigation for Deutsche Bank ties

Christiana Riley, head of Deutsche Bank's US division, called the violent
siege on the Capital “a dark day for America and our democracy” in a post on LinkedIn last week.

“We are proud of our Constitution and stand by those who seek to uphold it to ensure that the will of the people is upheld and a peaceful transition of power takes place,” Riley said.

“It is my hope that these shocking events will result in a reinvigoration
of the principles our nation was built upon.”

Trump's relationship with Deutsche Bank has sparked numerous probes in the United States, including in New York, where the Manhattan District Attorney is investigating whether Trump committed financial crimes as he sought loans.

READ ALSO: 'Worlds between us': What Trump's German family's town thinks of him today

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