Deutsche Bank Settles Libor Manipulation Lawsuit for $240M

In a preliminary settled reach in a private US antitrust lawsuit, Deutsche Bank AG (DB) will pay $240M to settle allegations that it conspired with other banks to rig the London interbank offered rate (Libor) benchmark. The plaintiffs in the Libor manipulation lawsuit are “over-the-counter” investors that engaged directly in transactions with banks belonging to the panel tasked with determining the key benchmark.

Banks use Libor to establish rates on mortgage, credit card, student loan, and other transactions, as well as to figure out how much it would cost to borrow from one another. Libor is expected to be phased out before 2022.

Despite settling, the German lender denied any wrongdoing. The settlement must still be approved by a court before it is final.

Some of the biggest banks in the world came under fire over allegations that they conspired with each other to rig Libor. About 16 banks have been accused by investors of colluding together to manipulate Libor. Other banks to settle with investors over Libor rigging allegations are Citigroup (C), which agreed last year to pay $130M, and Barclays (BARC) which agreed in 2015 to pay $210M. In 2015, regulators in the US and the UK fined Deutsche Bank $2.5B over allegations of Libor manipulations. Overall, banks have paid about $9B globally to resolve Libor rigging investigations.

It was just earlier this month that the Commodity Futures Trading Commission announced that Deutsche Bank Securities would pay a $70M monetary penalty to settle allegations that it tried to manipulate the ISDAFIX benchmark. Earlier, in January, Deutsche Bank and Deutsche Bank Securities were ordered by the regulator to pay a $30M penalty over allegations that it rigged, tried to manipulate, and engaged in spoofing in the precious metals futures market. Last September, Deutsche Bank AG consented to pay $190M to settle another private investor lawsuit accusing it of manipulating prices in the foreign exchange market.

FCA Orders Ex-Deutsche Bank Trader to Pay $249K

The Financial Conduct Authority in the UK is ordering former Deutsche Bank trader Guillaume Adolph to pay $249K. Adolph is accused of acting “improperly” to affect the quotes employed for Libor when making submission on behalf of the German bank. His is also barred from the financial services industry.

Adolph’s attorney claims that his client is not contesting the FCA’s findings because he eager to get on with life outside the industry. The attorney said that this was not an admission of guilt and maintains that Deutsche Bank, not Adolph, is to blame for the Libor rigging scandal.

The FCA, however, contends that between 7/2008 and 3/2010, Adolph asked Deutsche Swiss Franc Libor submitters to modify their quotes so that his trading positions would benefit. The ex-Deutsche Bank trader also is accused of considering his own trading positions while serving as the bank’s main yen Libor submitter.

Adolph is not the only trader banned or ordered to pay a fine for Libor rigging. Tom Haynes, an Ex-Citigroup (C) and UBS (UBS) trader, is serving time in prison for his involvement.

Please contact The SSEK Partners Group if you would like to explore your legal options or determine whether you have grounds for an investor fraud lawsuit.

Deutsche Bank to pay $240 million to end Libor rigging lawsuit in U.S., Reuters, February 27, 2018

U.K. watchdog fines, bans ex-Deutsche Bank trader ‘Gollum’ over Libor, MarketWatch, March 5, 2018

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