Deutsche Bank was ordered to fire another seven staff yesterday for manipulating Libor submissions between 2005 and 2010 – but no top bosses have resigned over the scandal.
The $2.5bn (£1.7bn) fine is far bigger than any previously levied on other banks, in part because Deutsche’s staff misled regulators and tried to cover up the offences.
However, the German lender is adamant there is no link between the misbehaviour and senior bosses.
Co-chief executives Jurgen Fitschen and Anshu Jain came under fire for failing to take any responsibility.
“It was not just a few bad traders who got out of hand one day, it is a more deep-seated cultural problem. It is important for the City that someone senior takes responsibility,” said Mark Taylor from Warwick Business School. “If nobody resigns then it feels like business as usual.”
Investor groups were also critical.
“There has been a history of banks facing large fines, but limited accountability at the most senior levels,” said Andrew Whiley from shareholder advisory group Pirc.
Critics said that cultural problems are underlined by emails traders sent asking for rates to be altered.
One manager asked a submitter in 2006: “…COULD I BEG YOU FOR A LOW 3M [EURIBOR] FIXING TODAY PLEASE.. THAT WOULD BE THE BEST XMAS PRESENT ;)”
Deutsche Bank argues that senior executives were not responsible.
“No current or former member of the management board was found to have been involved in or aware of the trader misconduct,” the bank said.
Fitschen and Jain said they “deeply regret” the wrongdoing, saying: “We have disciplined or dismissed individuals involved; [and] have substantially strengthened our control teams.”
The FCA levied a fine of £227m.
“This wasn’t limited to a few individuals but, on certain desks, it appeared deeply ingrained,” said the FCA’s Georgina Philippou. “Deutsche Bank’s failings were compounded by them repeatedly misleading us.”
US authorities were also involved. The bank is paying the Department of Justice $775m, as well as $800m to the Commodity Futures Trading Commission and $600m to the New York Department of Financial Services (DFS). The DFS added the condition that another seven staff be fired, taking the total disciplined to 29 so far.
They are understood to be Gary-Allen Brown, Shivani Mathur, Gavin Black, Yves Paturel, Thierry Barbieux, and Matthiew Billet in London, plus Anne-Eva Thomas, in Frankfurt.
|OTHER HUGE LIBOR FINES DISHED OUT TO THE BANKS|
RP Martin 2008
reduced to £630,000