FRANKFURT (Reuters) - Deutsche Bank denied a German newspaper report on Friday that claimed a senior bank official knew of alleged currency market manipulation efforts as far back as 2006.
The Frankfurter Allgemeine Zeitung reported on its website that a senior Deutsche currency trader attended meetings with officials from Bank of England eight years ago where currency trading irregularities were discussed.
Details of those meetings were first brought to light on Wednesday in a Reuters report.
The so-called currency fixings that are at the center of a global investigation into allegations of manipulation by traders are used to price trillions of dollars worth of investments and deals and relied upon by companies, investors and central banks.
Regulators have said the alleged foreign exchange manipulation is as bad as the Libor interest rate rigging, which has resulted in banks shelling out $6 billion in fines and settlements and criminal cases against some individuals.
Deutsche Bank, however, said that its representative did not attend the BOE meeting in July, 2006, of the Chief Dealers’ Subgroup of the Foreign Exchange Joint Standing Committee where irregularities were discussed.
Deutsche Bank, Germany’s flagship bank, is a member of the committee but did not attend the meeting, the bank said.
Deutsche Bank, the world’s largest currency trader, also said that its own behavior in the currency markets was never a topic at the meetings.
“The facts are that no allegations of manipulation or wrongdoing were raised against us at the Bank of England meeting in July 2006. Further, Deutsche Bank was not even present at the referenced meeting,” the bank said in a statement.
“The minutes of the meeting do not address the behavior of
Deutsche Bank nor any of the banks executing orders at the fix on behalf of clients,” Deutsche said.
Deutsche said it was pursuing its own internal review of currency market dealings and was cooperating with regulatory authorities in their investigations.
Reporting by Thomas Atkins