Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Deutsche Bank fined almost $10 million over Euribor controls

Published 29/12/2021, 07:59
Updated 29/12/2021, 13:38
© Reuters. FILE PHOTO: The logo of Germany's Federal Financial Supervisory Authority BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) is pictured outside an office building of the BaFin in Bonn, Germany, April 15, 2019.  REUTERS/Wolfgang Rattay

© Reuters. FILE PHOTO: The logo of Germany's Federal Financial Supervisory Authority BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) is pictured outside an office building of the BaFin in Bonn, Germany, April 15, 2019. REUTERS/Wolfgang Rattay

By Tom Sims and Hans Seidenstuecker

FRANKFURT (Reuters) -German financial regulator BaFin has fined Deutsche Bank (DE:DBKGn) nearly $10 million for controls related to the Euribor interest rate in a setback for the nation's largest lender as it seeks to restore its reputation.

The 8.66 million euro ($9.77 million) fine announced on Wednesday is the first imposed by BaFin under a 2018 regulation that seeks to prevent manipulation of Euribor, the Euro Interbank Offered Rate benchmark used in the financial industry.

"The bank at times did not have in place effective preventive systems, controls and policies," BaFin said.

Deutsche Bank said it accepted the fine and had implemented measures to improve its controls regarding Euribor.

The bank added that there was no reason to believe it had made incorrect rate submissions to the benchmark administrator.

The period in question was between April 2019 and April 2020, a source with knowledge of the matter told Reuters.

BaFin found flaws in certain processes meant to safeguard the quality of data used to calculate the rate, including weaknesses in regular controls and other organisational precautions, the source said.

The bank has been subject to numerous regulatory and legal investigations over the past decade. This has included rate-rigging allegations that have involved multiple global banks.

In April BaFin ordered Deutsche Bank to implement further safeguards to prevent money laundering.

© Reuters. FILE PHOTO: The logo of Germany's Federal Financial Supervisory Authority BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) is pictured outside an office building of the BaFin in Bonn, Germany, April 15, 2019.  REUTERS/Wolfgang Rattay

Under new leadership, BaFin has itself been trying to restore its image https://www.reuters.com/business/finance/germanys-new-finance-watchdog-vows-further-supervision-reforms-2021-10-13 after it failed to spot wrongdoing ahead of the collapse last year of German payments company Wirecard.

($1 = 0.8861 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.