Deutsche Bank hit by record $2.5bn penalty

Deutsche Bank (DB) has been fined $2.5bn (£1.66bn) by US and UK regulators for trying to manipulate the Libor and Euribor inter-bank rates.

The record penalty - $2.1bn by US regulators and £227m by the UK's Financial Conduct Authority - is due to the fact that DB also tried to mislead regulators and could have hampered investigators.

Georgina Philippou, the FCA's acting director of enforcement and market oversight, said in a statement: "This case stands out for the seriousness and duration of the breaches by Deutsche Bank - something reflected in the size of today's fine.
"One division at Deutsche Bank had a culture of generating profits without proper regard to the integrity of the market. This wasn't limited to a few individuals but, on certain desks, it appeared deeply ingrained."

"Deutsche Bank's failings were compounded by them repeatedly misleading us. The bank took far too long to produce vital documents and it moved far too slowly to fix relevant systems and controls," she said.

The bank said in a statement "disciplined or dismissed individuals" involved and tightened governance controls and that it deeply regretted the matter. US regulators have demanded the dismissal of a further seven senior individuals still employed.

The misconduct involved at least 29 Deutsche Bank individuals, including managers and traders, mainly based in London but also in Frankfurt, Tokyo and New York. It took place between 2005 and 2009.