Attorney General Josh Stein Announces $220 Million Settlement with Deutsche Bank over Interest Rate Benchmark Manipulation
Release date:
10/25/2017
(RALEIGH) Attorney General Josh Stein today announced a $220 million settlement with Deutsche Bank for fraudulent conduct involving the manipulation of LIBOR. LIBOR is a benchmark interest rate that affects financial instruments worth trillions of dollars and has widespread impacts on global markets and consumers.
“A multi-national bank manipulated interest rates to defraud government entities and not-for-profit organizations in North Carolina, harming consumers in the process,” said Attorney General Stein. “Manipulating interest rates is nothing more than sophisticated cheating, and I won’t stand for it.”
The investigation uncovered that Deutsche Bank employees:
- made internal requests for LIBOR submissions to benefit Deutsche Bank’s trading position;
- attempted to influence other banks’ LIBOR submissions to benefit Deutsche Bank’s trading position; and
- received communications from inter-dealer brokers and external traders attempting to influence Deutsche Bank’s LIBOR submissions.
The states are determining exactly how money will be distributed, though the plan is for North Carolina governmental or non-profit organizations that have been defrauded will receive some restitution.
Attorney General Stein is joined in this effort by 44 other state attorneys general. Deutsche Bank is the second of several USD-LIBOR-setting panel banks under investigation by the state attorneys general to resolve claims against it and has cooperated with the investigation.
Contact:
Laura Brewer (919) 716-6484
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