Furthermore, the AGs found that Deutsche Bank management and employees knew that its LIBOR submissions and other banks did not reflect the true borrowing rates. They also knew that the published LIBOR rates did not reflect the actual borrowing costs of Deutsche Banks and other banks.
According to the AGs, Deutsche Bank defrauded millions of dollars from U.S. government entities and non-profit organizations through swaps and other financial contracts.
Statements from California and New York AGs
In a statement, California AG Xavier Becerra said the company was busy increasing its profits at the expense of Californians. The company “manipulated interest rates hoping to turn a quick profit” during the financial crisis.
In the process, they left government entities and non-profits in California hanging out to dry. This conduct is unacceptable and it is illegal. Banks and financial institutions do not get to play fast and loose with the law,” added Becerra.
On the other hand, New York AG Eric Schneiderman, said, “We will not tolerate fraudulent, manipulative or collusive conduct…Large financial institutions, like all other market participants have to abide by the rules.”
