Washington, D.C. – On April 23, 2015, the U.S. Commodity Futures Trading Commission (CFTC) issued an order against Aitan Goelman, settling charges that Deutsche Bank AG engaged in false reporting and manipulation of key interest rate benchmarks. The bank is accused of routinely manipulating the London Interbank Offered Rate (LIBOR) for U.S. Dollar, Yen, Sterling, and Swiss Franc, as well as the Euro Interbank Offered Rate (Euribor).
The CFTC alleges that Deutsche Bank, through its traders and benchmark submitters, engaged in manipulative conduct from at least 2005 through early 2011 to benefit their trading positions. The bank also allegedly aided and abetted manipulation attempts by traders at other financial institutions.
As a result of the CFTC’s findings, Deutsche Bank has been ordered to pay a civil monetary penalty of $800 million. The bank must also cease and desist from violating the Commodity Exchange Act and implement measures to ensure the integrity of its benchmark interest rate submissions.
“Today’s action against Deutsche Bank reflects the CFTC’s unwavering commitment to protect the integrity of critical, global financial benchmarks,” stated Aitan Goelman, CFTC Director of Enforcement. “Deutsche Bank’s culture allowed egregious and pervasive misconduct to thrive. We will be relentless in continuing to investigate and bring benchmark manipulation cases.”
The CFTC’s order details how Deutsche Bank’s submitters routinely considered the bank’s derivatives trading positions when making LIBOR and Euribor submissions. This systemic misconduct spanned multiple trading desks and offices in London, Frankfurt, New York, Tokyo, and Singapore. The bank’s cash and derivatives trading desks generated significant revenue, particularly during the 2007-2009 financial crisis.
According to the CFTC, Deutsche Bank fostered a culture that prioritized profit motives over accurate submissions, allowing conflicts of interest to flourish. Managers reportedly encouraged information sharing between traders and submitters, even restructuring business lines to place them in close proximity.
Source: CFTC.gov
Related Federal Cases
- Goldman Sachs, Swap Data Manipulation, District of Columbia 2023 · New York
- FDIC ComE-IN Panel No Defendant Found, Washington DC, Not Applicable · New York
- Letitia James, Environmental Law Violation, New York 2024 · New York
- Letitia James Sues Live Nation for Illegal Monopoly, New York NY, 2023 · District of Columbia
- Letitia James Defends Sanctuary City Laws, New York NY, 2023 · New York
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News