Deutsche Bank has agreed to pay $2.5bn to the US and UK regulators to resolve allegations that it manipulated the Libor benchmark rate.
The German lender has been fined $2.12bn by US regulators, and $340m by UK regulators.
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The bank has been accused of cultural failings, with senior staff accused of misleading regulators, not being cooperative, and prolonging the probe. The scam spanned from around 2003 to 2010.
The London-based subsidiary of the bank has pleaded guilty to criminal wire fraud, while the parent group inked a deferred prosecution deal to settle US wire fraud and antitrust charges.
FCA acting director of enforcement and market oversight Georgina Philippou said, "This case stands out for the seriousness and duration of the breaches by Deutsche Bank – something reflected in the size of today’s fine."
The lender has also been ordered by the US regulator to dismiss seven employees in association with the interest rate rigging. This includes six London-based employees comprising a managing director, four directors and a vice president, as well as a Frankfurt-based vice president.
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By GlobalDataAccording to UK’s Financial Conduct Authority (FCA), at least 29 employees of the bank, which includes managers, traders and submitters, were associated with the wrongdoing based mainly in London, as well as in Frankfurt, Tokyo and New York.
The watchdog also alleged that senior employees of the bank wrongly claimed that the bank’s German regulator BaFin had prevented it from sharing a crucial report with the UK regulator.
Further, the bank reportedly damaged 482 tapes of telephone calls by mistake during the probe, as well as provided inaccurate information about the existence of other records.
Expressing regret on the issue Deutsche Bank co-chief executives Jürgen Fitschen and Anshu Jain said, "We deeply regret this matter but are pleased to have resolved it. The Bank accepts the findings of the regulators.
"We have disciplined or dismissed individuals involved in the trader misconduct; have substantially strengthened our control teams, procedures and record-keeping; and are conducting a thorough review of the Bank’s actions in addressing this matter."
