By KINIBIZ
Frankfurt – Germany’s biggest bank, Deutsche Bank, suspended five traders from its money market team in Frankfurt, following an internal investigation into interbank interest rate manipulation.
A spokesman for Deutsche Bank said, “After the bank determined that a certain number of employees had behaved inappropriately, those employees were suspended or dismissed, and forfeitable remuneration components withheld.”
The five were responsible for setting reference rates such as the London interbank rate (Libor), used internationally to set the cost of many loans, and its European associate rate, the Euribor.
Deutsche Bank’s announcement followed a statement from the Royal Bank of Scotland (RBS) that it is paying more than 610 million dollars as a penalty in Britain and the United States for manipulating interest rates.
RBS, which is majority owned by the British government, said it had agreed to pay Britain’s Financial Services Authority 87.5 million pounds (US$138 million) the US Commodity Futures Trading Commission about US$100 million and the US Department of Justice US$150 million.
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