Deutsche Bank pays over $240 million in fines over LIBOR price rigging scandal.
On February 27, 2018 Deutsche Bank AG agreed to a $240 million settlement. The fines were over alleged price rigging which Deutsche Bank has denied. Private US antitrust prosecutors insist that Deutsche conspired with other banks to fix the London Interbank Offered Rate (LIBOR). LIBOR is what sets the global standard of interest rates. Per Investopedia, “The most commonly quoted rate is the three-month U.S. dollar rate (usually referred to as the ‘current LIBOR rate’).” In short, if you can manipulate LIBOR, then you can make sure that the money moves in your favor.
For banks, the money keepers, rigging the LIBOR rate means scamming clients and the global community at large. In 2011, Baltimore city and Yale University investors accused as many as 16 banks in LIBOR manipulation. “Citigroup C , JPMorgan Chase & Co. JPM and HSBC Holdings Plc HSBC” are among the other banks named. Collectively the banks have paid nearly $9 billion in fees for LIBOR fraud.
Deutsche’s settlement is “an excellent achievement for the class,” according to Michael Hausfeld, from the investors’ legal team.