Deutsche Bank AG has agreed to pay $70m to settle claims by the US regulator that the bank's traders have tried to manipulate the derivatives market, interest rates and other financial instruments.
According to CFTC, for years, Deutsche Bank Securities traders have sought to equalize ISDAfix in order to benefit from the positions of the companies under options settled in interest rate swaps. Investigators said bank staff had attempted to target the rate with a pair of strategies and that the abuse had occurred since 2007. until May 2012.
The bank's employees claimed to have known and even debated that they were violating the law, but they were also aware that a large number of Wall Street players were performing similar manipulations. Following the fine, Deutsche Bank works in cooperation with CFTC, stating that Citigroup Inc., Barclays Plc, Goldman Sachs Group Inc. and Royal Bank of Scotland Group Plc have much to say about ISDAfix manipulations.
To date, US regulators have imposed fines totaling over $600m, but entirely on demand by banks suspected of doing so and without proof.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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