Deutsche Bank AG was ordered had to pay a massive penalty for its role in manipulating Libor interest rates (the London Interbank Offered Rate). The US and UK supervisory authorities filed a lawsuit against Germany's biggest lender. Investigators managed to find out grave evidence that the bank was engaged in rigging the benchmark interest rate in Japanese yens as well as fixing European EURIBOR and Japanese TIBOR. The swindling scheme enabled Deutsche Bank to reap hefty profits. The gains were shared among individual employees involved in misconduct. The fine imposed on Deutsche Bank is so record high because the bank "misled the regulator, which could have hampered its investigation," British regulator FCA said in a statement. The overall penalty worth whopping $2.5 billion includes fines to the US and UK authorities as part of a legal settlement. The German lending institution has to pay $340 million to the UK Financial Conduct Authority (FCA). The remaining $2.175 billion goes to various US agencies. Thus, according to the ruling the US Department of Justice should receive $775 million. $600 million is paid to the New York State Department of Financial Services (NYDFS). $800 million goes to the US Commodity Futures Trading Commission (CFTC). Apart from huge fines, Deutsche Bank has to fire 7 employees. The investigation revealed that 29 staffers participated in the rigging scheme, including a senior executive, medium-level managers as well as traders from the bank’s branches in London, New York, Tokyo, and Frankfurt.
