Deutsche Bank Close to $1.5 Bln Settlement in LIBOR Manipulation

With the probe into manipulating foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rates reaching its first conclusion almost half a year ago, Deutsche Bank is reportedly in the process of finalizing its litigation costs related to Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term.

The London Interbank Offered Rate (LIBOR) has allegedly been manipulated by traders of the German mega bank. According to recently leaked discussions between U.S. federal prosecutors and U.S. and U.K. regulators with Deutsche Bank, a settlement to the tune of $1.5 billion is in the works.

According to information from the leaks, the end of the LIBOR saga for Deutsche Bank may be near, as discussions could be concluded by the end of the month. In a rare occurrence, the final deal could include a criminal guilty plea by the German bank’s subsidiary in the United Kingdom, according to sources cited in recent media reports.

A number of globally operating banks have been hit by a slew of fines and settlements related to alleged manipulation of a number of LIBOR rates. The benchmark is set in London and is used to determine the interest rates on trillions of dollars of financial products, including loans, mortgages, credit cards and derivatives.

The LIBOR fixing scandal engulfed the German bank in January 2013. At the time, the biggest financial institution in Germany announced that it was setting aside about €1 bln for future litigation costs.

Unfortunately for shareholders of Deutsche bank, the legal challenges for the company do not end here, as it is still facing charges related to manipulation of foreign exchange rate fixings and violations of U.S. sanctions against a number of countries.