Germany's biggest bank, Deutsche, is fined $2.5 billion by U.S. and British regulators. As Hayley Platt reports, it becomes the eighth financial group to settle allegations of rigging interest rate benchmarks.
Deutsche, Germany's biggest bank is to pay a $2.5 billion fine for manipulating interest rate benchmarks. The penalty is a record for such misconduct. Deutsche bank will have to pay US authorities $2.175 billion - the rest goes to UK regulators. They say the misconduct involved at least 29 managers, traders, and others based mainly in London, but also in Frankfurt, Tokyo and New York - adding that the case ''stands out'' in its seriousness. The fines dwarfs the previous $1.5 billion record demanded in 2012 from Switzerland's UBS. Jeremy Stretch is a strategist at CIBC. SOUNDBITE (English) JEREMY STRETCH, HEAD OF FX STRATEGY, CIBC, SAYING: "I think it will hurt financially but I think it will also hurt in terms of reputation and that of course is the other underlying message that we've seen to the banks that have been fined for any number of transgressions of regulations, whether it be Libor or FX market rigging or other issues that they might have been charged with." The fine comes after a seven-year investigation into a scam to manipulate Libor and Euribor. Together, the two are benchmarks for hundreds of trillions of dollars of financial products and loans worldwide. The fines imposed - on some of the world's top financial institutions - now total more than 8.5 billion dollars.