Deutsche Bank hit with largest Libor fine in history, Deutsche Bank has been handed the biggest fine over Libor manipulation in history, with British and American regulators handing the German financial giant a £1.7bn penalty.
The Financial Conduct Authority, and the US Commodities Futures Trading Commission, Department of Justice and New York’s Department of Financial Services levied the fine on Thursday afternoon.
The $2.5bn (£1.66bn) fine exceeds the $1.5bn handed to UBS for Libor manipulation in 2012, and is more than the £952m that Barclays, Royal Bank of Scotland and Lloyds have paid to UK and US authorities between them.
The FCA said the fine was higher than previous ones because Deutsche Bank had misled the regulator, hampering its investigation.
“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 FCA’s Georgina Philippou said.
“One division at Deutsche Bank had a culture of generating profits without proper regard to the integrity of the market. This wasn’t limited to a few individuals but, on certain desks, it appeared deeply ingrained.”
Deutsche Bank said on Wednesday night it was putting aside an extra €1.5bn (£1.1bn) for litigation costs, fuelling speculation that the hefty fine would come on Thursday.
The penalty, which is expected to be one of the last FCA fines for Libor manipulation, comes almost three years after the scandal first emerged when Barclays was handed a £290m fine.
Bob Diamond, the bank’s former chief executive, left Barclays shortly after the fine, as did its chairman Marcus Agius.
The $2.5bn (£1.66bn) fine exceeds the $1.5bn handed to UBS for Libor manipulation in 2012, and is more than the £952m that Barclays, Royal Bank of Scotland and Lloyds have paid to UK and US authorities between them.
The FCA said the fine was higher than previous ones because Deutsche Bank had misled the regulator, hampering its investigation.
“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 FCA’s Georgina Philippou said.
“One division at Deutsche Bank had a culture of generating profits without proper regard to the integrity of the market. This wasn’t limited to a few individuals but, on certain desks, it appeared deeply ingrained.”
Deutsche Bank said on Wednesday night it was putting aside an extra €1.5bn (£1.1bn) for litigation costs, fuelling speculation that the hefty fine would come on Thursday.
The penalty, which is expected to be one of the last FCA fines for Libor manipulation, comes almost three years after the scandal first emerged when Barclays was handed a £290m fine.
Bob Diamond, the bank’s former chief executive, left Barclays shortly after the fine, as did its chairman Marcus Agius.
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