Deutsche Bank agreed to settle the allegations of multiple States that it is involved in manipulating the benchmark interest rates.
On Wednesday, Deutsche Bank agreed to pay $220 million to the Attorneys General (AGs) of 45 States to resolve their allegations. The AGs alleged that the company rigged the London Interbank Offered Rate (LIBOR) and other benchmark interest rates.
Under the settlement agreement, the company also agreed to cooperate with the AGs’ investigation and other related proceedings and actions.
The Attorneys General of California and New York led the working group investigating the fraudulent conduct of Deutsche Bank.
AGs allegations against Deutsche Bank
In their investigation, the AGs found that Deutsche Bank acted unlawfully as early as 2005 through the financial crisis. They discovered that the company defrauded counterparties by failing to disclose that it made false or misleading LIBOR submissions.
Additionally, the AGs found that Deutsche Bank traders tried to influence the LIBOR submissions of other banks for its advantage. It is also aware that other banks were manipulating their LIBOR submissions and the LIBOR was a false rate.
