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Deutsche Bank Gets Fined for Trying To Fix Interest Rates

Deutsche Bank Gets Fined for Trying To Fix Interest Rates

Deutsche Bank has been fined $2.1bn by US regulators and £227m by the UK’s Financial Conduct Authority. The penalty has gone on record as one of the highest ever awarded to a bank. Deutsche attempted to mislead regulators and, allegations suggest, could have hampered with the investigation process. Trades colluded in setting benchmark rates, in order to improve their trading positions.

The bank released a statement saying that the individuals involved had been ‘disciplined or dismissed’ and the bank has tightened its governance controls. The bank said it ‘deeply regrets’ the matter.

The US regulator still demands the bank to dismiss a further seven individuals who are alleged to have been involved with the matter, and are still employed at the bank. The acting director of the FCA’s enforcement and market oversight, Georgina Philippou, released a statement that some divisions of the bank had a ‘culture of generating profits without proper regard to the integrity of the market’. She went on to state that the deviant culture was ‘deeply ingrained’ in the practises of the bank.

The misconduct is said to have involved at least twenty-nine individuals, including managers and traders, most of who were based in London but also across other divisions of the bank across the world.

The current total since 1 January 2015 of money collected in fines by the FCA at the Treasury stands at just over £411m.

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