Deutsche Bank Libor Fines Said Not to Come Before March
By Suzi Ring and Nicholas Comfort Dec 8, 2014 2:54 PM GMT+0100 0
Deutsche Bank AG settlements with U.K. and U.S. authorities over the manipulation of interest-rate benchmarks probably won’t occur before March, said a person with knowledge of the matter, at least three years after probes into the bank began.
Settlement talks between the Frankfurt-based lender and the U.K. Financial Conduct Authority over the rigging of the London interbank offered rate and related benchmarks are still at an early stage, with no findings or penalties presented to the lender, said the person, who asked not to be identified because the probe is private.
The U.S. Commodity Futures Trading Commission may settle at the same time as the FCA, the person said. The U.S. Justice Department may also issue a fine with the FCA and the CFTC, although the bank hasn’t had much contact with the agency in recent months, said the person. Deutsche Bank is scheduled to publish its annual report on March 24, which means any costs resulting from settlements after that date have to be included in the company’s 2015 accounts.
Deutsche Bank first said it was under investigation over Libor in March 2012, and that it had received requests for information from U.S. and European regulators for the period 2005 to 2011. In October, the bank said it was in discussions with some authorities about a resolution. The German lender was fined 725 million euros ($889 million) by the European Union last December for manipulating yen Libor and the euro interbank offered rate.
Regina Schueller, a spokeswoman for Deutsche Bank, said the bank is cooperating with the investigations. Lara Joseph, a spokeswoman for the FCA, declined to comment. Peter Carr, a Justice Department spokesman, said its Libor investigations are continuing, while declining to comment on Deutsche Bank. Steve Adamske, a spokesman for the CFTC, declined to comment.
Bafin Report
Bafin, Germany’s financial market regulator, will also compile a report on its probe into Deutsche Bank and Libor. Earlier this year, Bafin asked audit company Ernst & Young LLP - - which is conducting the investigation for the regulator -- to extend its probe to look more into what Anshu Jain, the bank’s co-chief executive officer, knew about the behavior, two people with knowledge of the situation said.
The investigation hasn’t found any evidence Jain knew about or participated in possible interest-rate manipulation, newspaper Handelsblatt reported yesterday. Bafin has also concluded that other board members didn’t know about or take part in any such activity, Handelsblatt said.
Oliver Struck, a spokesman for Bafin in Bonn, declined to comment. Dag-Stefan Rittmeister, a Stuttgart-based spokesman for Ernst & Young, didn’t immediately respond to a phone call and e-mail seeking comment on the status of the investigation.
Ernst & Young is still asking for information from the bank for its report, one person said.
For Related News and Information: Deutsche Bank to RBS Fined by EU as Libor Bill Tops $6 Billion Jain Haunted by Rainmaker Past as Deutsche Bank Fines Multiply Deutsche Bank Replaces Two Executives as Legal Expenses Soar
To contact the reporters on this story: Suzi Ring in London at sring5@bloomberg.net; Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.net
To contact the editors responsible for this story: Heather Smith at hsmith26@bloomberg.net Frank Connelly, Steve Bailey
http://www.bloomberg.com/news/2014-12-08/...to-come-before-march.html |
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