Exclusive: Deutsche Bank suspends traders over Euribor - source

Wed Feb 6, 2013 1:05pm EST
 

By Philipp Halstrick

FRANKFURT (Reuters) - Deutsche Bank has suspended five traders suspected of inappropriate conduct following an internal investigation into possible manipulation of the Europe Interbank Offered Rate (Euribor), a source familiar with the matter said on Wednesday.

Germany's flagship lender launched an internal investigation after regulators drew attention to potential involvement of Deutsche Bank staff in a global scam to manipulate benchmark inter-bank lending rates.

The traders, who worked on Deutsche Bank's money market team in Frankfurt, were suspended on Tuesday, the source said.

Deutsche Bank, which suspended two traders last year for involvement in the manipulation of Libor (London interbank offered rate), would not say how many traders were suspended. It added that no current or former board members have been implicated.

Deutsche Bank is cooperating in the various investigations into potential manipulation of interbank offered rates and last week said it did not expect to announce a resolution of regulatory probes in to Libor this year.

On Wednesday British bank Royal Bank of Scotland was fined some $612 million to settle charges of rigging the London Interbank Offered Rate (Libor). Rival Barclays was fined $453 million in June while UBS paid about $1.5 billion in December.

Libor is just one of a raft of legal problems haunting Deutsche. It faces lawsuits accusing the bank of misleading investors about the quality of risky residential mortgage-backed securities, and it saw senior executives drawn into a widening tax evasion probe linked to carbon trading following a raid on its headquarters.

Deutsche on Wednesday referred to a statement made in January when it commented about progress on its internal probe, triggered by concerns that benchmark interest rates were being manipulated.   Continued...

 
A statue is pictured in front of the former head quarters of Germany's largest business bank, Deutsche Bank in Frankfurt, January 28, 2013. REUTERS/Kai Pfaffenbach