Deutsche Bank agrees to pay $170m to settle Euribor manipulation lawsuit

Maria Nikolova

As a part of the settlement, Deutsche Bank did not admit any wrongdoing. It settled to avoid the cost of further litigation, as its legal expenses have surpassed €15 billion ($16.8 billion) since 2009.

One of the world’s biggest FX interbank dealers Deutsche Bank AG (ETR:DBK) has managed to settle an investor lawsuit over alleged manipulation of European Interbank Offered Rate (Euribor).

According to a report by Reuters, the bank has reached a preliminary settlement with plaintiffs, including the California State Teachers’ Retirement System (CalSTRS) and FrontPoint Australian Opportunities Trust. Investors had accused the bank of conspiring to rig Euribor and fix prices of Euribor-based derivatives from June 2005 to March 2011 to profit at the investors’ expense, thus violating the United States antitrust law.

The preliminary settlement was filed on Monday at the New York Southern District Court and requires a judge’s approval. As a part of the settlement, Deutsche Bank does not admit any wrongdoing and agrees to pay $170 million.

There are a number of benchmark rate manipulation cases against big banks at the New York Southern District Court. In May this year, FinanceFeeds reported that HSBC and US bondholders had managed to reach a settlement over alleged Libor manipulation by the bank. The bondholders claim that Libor rigging had caused them to receive artificially low returns on more than $500 billion of dollar-denominated debt whose interest payouts were linked to Libor.

The preliminary settlement, reached on Monday, allows Deutsche Bank to avoid costs associated with further litigation. The bank’s legal expenses have exceeded €15 billion ($16.8 billion) since 2009. In April this year, the US Federal Reserve has announced the imposition of $156.6 million in civil monetary penalties on the bank. The penalty included a fine of $136,950,000 over unsound FX practices, as well as a $19.71 million fine for non-compliance with the Volcker rule.

Read this next

blockdag

BlockDAG Targets 20,000x ROI, Excels Beyond Litecoin’s Rise, and Enhances Ethereum Layer 2 Activity

Explore BlockDAG’s promising 20,000X ROI as it leads, with significant developments in Ethereum Layer 2 and a surge in Litecoin’s value post-Dencun upgrade.

Digital Assets

Hong Kong regulators approve spot Bitcoin and Ether ETFs

Hong Kong-based asset managers received approval from regulators on Monday to launch spot Bitcoin and Ether ETFs.

Digital Assets

Vitalik Buterin backs Railgun with $350K, RAIL price triples

Privacy cryptocurrency Railgun (RAIL) skyrocketed over 250% following a positive comment from Ethereum co-founder Vitalik Buterin.

Digital Assets

Uniswap hits $2 trillion in trading volume ahead of SEC’s lawsuit

Decentralized finance (DeFi) exchange Uniswap crossed $2 trillion in total trading volume despite escalating competition from other networks and regulatory setback.

blockdag

BlockDAG’s $17.3M Presale Success Elevates Security Beyond Ethereum Classic Value and Fantom Trends

Explore how BlockDAG’s advanced security with batch 9 entry and $17.3M raised outshines Ethereum Classic value and Fantom’s market moves.

Institutional FX

Finalto secures two prestigious awards at iFX EXPO LATAM 2024

Trading software and liquidity services provider Finalto received two accolades at the iFX EXPO LATAM 2024 held in Mexico City earlier this month.

Chainwire

SEABW Turns the Spotlight on Southeast Asia’s Flourishing Web3 Landscape With Over 40 Side Events and an All-encompassing Agenda

Southeast Asia Blockchain Week (SEABW), a premier blockchain conference exploring the evolving landscape of Web3 in the Southeast Asia region, is proud to announce that there will be over 40 side events, web3 meetups, workshops, and social gatherings.

Digital Assets

Landesbank Baden-Württemberg to offer crypto custody

Germany’s largest federal bank, Landsbanki Baden-Württemberg (LBBW), partnered with Austrian-based Bitpanda to provide “investment-as-a-service” infrastructure for cryptocurrencies. The new service will offer institutional and corporate clients the ability to store and procure digital assets such as bitcoin and ether.

Digital Assets

VALR Secures Regulatory Licenses from FSCA as a Leading Crypto Asset Service Provider in South Africa

VALR, the prominent crypto exchange backed by Pantera Capital and based in Johannesburg, has achieved a significant regulatory milestone by obtaining both a Category I and Category II license from the Financial Sector Conduct Authority (FSCA) of South Africa.

<