On Thursday, regulators in the U.S. and Britain said that Deutsche Bank has agreed to pay $2.5 billion to settle charges that its employees in London and Frankfurt had manipulated interest rates on trillions of dollars worth of debt, including mortgages and student loans, for their own profit between 2005 and 2009. "Markets do not just manipulate themselves," said New York State financial regulator Benjamin Lawsky. "It takes deliberate wrongdoing by individuals."
This is the largest settlement in the years-long interest-rate-fixing investigation by a hefty $1 billion — UBS agreed to a $1.5 billion penalty in 2012. Unlike some previous financial settlements, Deutsche Bank isn't avoiding legal ramifications: Its British subsidiary will plead guilty to fraud, and the bank is being forced to fire seven managers, six of them in London.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
US charges Indian tycoon with bribery, fraudSpeed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
-
Boeing machinists approve contract, end strikeSpeed Read The company's largest union approved the new contract offer, ending a seven-week strike
-
US economy still strong in final preelection reportSpeed Read It grew at a solid 2.8% annual rate from July through September
-
Boeing machinists reject deal, continue strikeSpeed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
-
Ports reopen after dockworkers halt strikeSpeed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
-
Empty-nest boomers aren't selling their big homesSpeed Read Most Americans 60 and older do not intend to move, according to a recent survey
-
Brazil accuses Musk of 'disinformation campaign'Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
-
Disney board fends off Peltz infiltration bidSpeed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
