A seven-year investigation of Germany's largest lender - Deutsche Bank AG (DB-NYSE) - resulted in the largest penalty imposed on one of the world's top financial institutions to the tune of nearly $8.5 billion.
U.S. regulators fined Deutsche Bank $2.12 billion and slammed the lender for "cultural failings", directly blaming senior staff officials for misleading regulatory officers, failing to be open and cooperative while prolonging the investigation. Regulators ordered the firing of seven Deutsche Bank employees, with twenty-one additional bank employees facing criminal charges.
Benjamin Lawsky, banking regulator for New York, ordered Deutsche Bank to fire six London-based employees including a managing director, four directors, a vice president and a Frankfurt-based vice president.
London-based Deutsche Bank subsidiary plead guilty to criminal wire fraud. Deutsche Bank parent group engaged into a deferred prosecution agreement to settle U.S. wire fraud and antitrust charges. Independent monitors would be installed, per U.S. authorities.
For its role in a rate fixing scam - such as the London Interbank Offered Rate (Libor) - that ran from years 2003 to 2010, British authorities imposed a $340 million penalty against Deutsche Bank. Libor is used to price hundreds of trillions of dollars of loans and contracts worldwide.
Contributed by Millennium Traders
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