Yahoo Finance Deutsche Bank unit sentenced in US Libor manipulation
A US court imposed a sentence on a Deutsche Bank unit Tuesday for its role in an interest rate rigging scheme, two years after the bank reached a $2.5 billion settlement with British and US authorities.
The development closed a minor chapter in the legal woes facing the German banking giant, which has rushed to resolve multiple cases with US officials in recent months and still reportedly faces an investigation over possible money laundering.
The bank in January finalized a $7.2 billion settlement with the US Justice Department over its role in the 2008 global financial crisis. And British and New York officials that month imposed $630 million in fines on the bank over an alleged money laundering in Russia.
In the latest chapter, a federal judge in Connecticut on imposed a $150 million fine on Deutsche Bank Group Services (UK), a Deutsche Bank subsidiary, the Justice Department announced.
The London unit already had pleaded guilty and agreed to pay that amount in April 2015, after admitting to its role in manipulating the benchmark London Interbank Offer Rate, a key interest rate.
Parent company Deutsche Bank in April 2015 reached a $2.5 billion global settlement with authorities in London, Washington and New York over the manipulation of the key interest rate, which influences transactions around the world.
Prosecutors say that between 2003 and 2010 derivatives traders at Deutsche Bank and other banks illegally colluded to move LIBOR rates in directions that favored their trading positions.
US officials also have pursued banks such as Citicorp, JPMorgan, Barclays and RBS over the LIBOR manipulation.
US enforcement actions against Deutsche Bank come as President Donald Trump faces persistent scrutiny over possible conflicts of interest due to his business activities. The Trump Organization reportedly owes Deutsche Bank at least $300 million.
