Deutsche Bank fined $2.5bn for trying to manipulate interest ratesApril 23, 2015 - 17:05 AMT PanARMENIAN.Net - The German bank will pay more than $2bn to U.S. regulators, while the UK's Financial Conduct Authority (FCA) has imposed a £227mln fine. The fine relates to manipulation of the Libor and Euribor inter-bank rates. The penalty is a record for such misconduct because Deutsche tried to mislead regulators and could have hampered the investigation. In 2012, Switzerland's UBS agreed to pay $1.5bn in a global settlement, while the UK's Barclays paid $453mln. The misconduct involved at least 29 Deutsche Bank individuals, including managers and traders, mainly based in London but also in Frankfurt, Tokyo and New York. It took place between 2005 and 2009. Libor and Euribor are benchmark interest rates, influencing the setting of other rates. They are used as a barometer to measure the health of the banking system and as a gauge of market expectation for future central bank interest rates. The FCA said they "are fundamental to the operation of both UK and international financial markets". But traders colluded to set these benchmark rates, hoping to improve their trading positions. The regulators released email exchanges between traders and submitters - the people who provide the information on which rate Libor and Euribor is set each day. The New York Department of Financial Services said that Deutsche still employs some people involved in the misconduct, and has demanded their dismissal. About 10 individuals have already had their employment ended, the DFS said, but it added: "However, certain employees involved in the wrongful conduct remain employed at the Bank." Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | European Parliament to discuss repression in Azerbaijan The European Parliament will discuss repression of civil society in Azerbaijan on April 24 PACE wants concessions from Azerbaijan to accept Baku back A PACE co-rapporteur said that Azerbaijani authorities must make certain concessions so that the country can return to PACE. Cyprus parliament honors Armenian genocide victims Acting House President Zacharias Koulias noted that April 24 marks the “black anniversary” of the Armenian genocide. Armenia PM, France envoy discuss regional matters Issues related to the consistent development of Armenia-France cooperation were discussed. |