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LIBOR

Deutsche Bank settles with US, UK for $2.5bn

German banking giant Deutsche Bank has been fined $2.51 billion over its role in a vast multi-year conspiracy to rig LIBOR interest rates, US and British authorities said Thursday.

Deutsche Bank settles with US, UK for $2.5bn
Deutsche Bank co-chairman J├╝rgen Fitschen (l) at a press conference in 2012. Photo: DPA

The case centers on charges that Deutsche Bank derivatives traders manipulated the London InterBank Offered Rate, used to peg millions of interest rate-sensitive contracts and loans around the world, from at least 2003-2011 to boost their trading positions.

Under the deferred prosecution agreement, Deutsche Bank agreed to plead guilty to a US charge of wire fraud, a criminal offense, in connection with the scam and admitted participating in price-fixing conspiracy.

Deutsche Bank employees defrauded counterparties in emails, telephone calls and electronic chats.

"Deutsche Bank admitted to manipulating benchmark interest rates in currencies around the globe in order to benefit trading positions," the Justice Department said in a statement.

"This wide-reaching investigation represents yet another step in the FBI's ongoing effort to find and stop those who deliberately participate in complex financial crimes to further their own bottom line."

The breakout of the fine included $1.4 billion in penalties to the Justice Department, $800 million to the US Commodity Futures Trading Commission, $600 million to the New York Department of Financial Services and $344 million to Britain's Financial Conduct Authority.

SEE ALSO: US sues Deutsche Bank over tax scam

 

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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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