Deutsche Bank fined $ 9.8 billion for Euribor control over Investing.com

Author: Dhirendra Tripathi

Investing.com – Deutsche Bank shares (NYSE 🙂 (DE 🙂 traded 0.5% lower in Germany on Wednesday after imposing a $ 8.66 million ($ 9.8 million) fine on the lender after the country’s financial watchdog failed to control Euro Bank Interbank Tariff remittances.

Euribor is derived from the average interest rate that banks borrow from each other, similar to the more popular London Interbank Offered Tata. Rates are used to rate consumer loans as well as complex derivatives.

“Sometimes the banks did not put in place an effective system of prevention, control and policy,” BaFin said.

Deutsche Bank accepted the fine and said it was implementing measures to improve its controls.

Although BaFin said Deutsche Bank had the right to appeal, it said the company accepted the fine to create “legal certainty”.

Banks including UBS (NYSE 🙂 and JPMorgan (NYSE 🙂 have been fined for lowering their rates in the past because they are now being phased out.

Germany’s largest lender has had a turbulent time in recent years as its management struggles to regain profitability in the face of numerous legal and regulatory challenges. The U.S. Department of Justice recently told Deutsche Bank that it may have violated a criminal agreement by failing to inform prosecutors of an internal complaint related to the lender’s asset management arm, Bloomberg said.