Deutsche Bank has agreed to pay $220m (£150m) to resolve a US investigation into its manipulation of interest rates.It is the latest settlement stemming from banks’ involvement in the rigging of the benchmark Libor rate.The sum is more than twice the $100m British bank Barclays agreed to pay last year to end a similar probe.It comes on top of a $2.5bn fine US and UK regulators levied against Deutsche in 2015, also over rate fixing.The latest settlement was announced by top attorneys in New York and California, who led the investigation into interest rate rigging on behalf of 45 states.The probe found that Deutsche Bank defrauded government entities and charities by making false or misleading submissions to set benchmark rates, including Libor, and trying to influence submission proposed by other banks. The aim was to move the rates to benefit internal trading positions.The misconduct started as early as 2005 and continued through the global financial crisis.How Libor came to be fiddledLibor, which is set by leading financial institutions through regular submissions of inter-bank rates, influences the rates used for borrowing on credit cards, mortgages, student loans and other transactions. Charities and government entities were defrauded of millions because of the activities, New York Attorney General Eric Schneiderman said. Those groups will be eligible for about $213m from the settlement, with the remainder going to pay legal fees.”We will not tolerate fraudulent, manipulative or collusive conduct that interferes with or undermines confidence in our financial markets,” said Mr Schneiderman. “Large financial institutions, like all other market participants, have to abide by the rules.” Deutsche said the penalty resolves its final inquiry from US regulators.The US regulators said their investigation of other banks continues.
Source: BBC News