German watchdog to study court verdict on Euribor traders -paper
FRANKFURT, Sept 15
FRANKFURT, Sept 15 (Reuters) - Germany's banking regulator will examine a court decision that Deutsche Bank unfairly dismissed traders responsible for interbank rates, as the watchdog investigates if the bank played a role in a rate fixing scam, Der Spiegel reported on Sunday.
BaFin, which has the power to dismiss senior managers, is studying whether Deutsche Bank took part in manipulating Libor and Euribor. In a report issued in August, BaFin found no evidence of wrongdoing by management board members.
But a labour court, which ruled on Sept. 11 that the bank had acted "out of proportion" by sacking four traders, revealed fresh evidence which the regulator now wants to study in detail, Der Spiegel said.
BaFin was not immediately available to comment on the story. Deutsche Bank declined comment.
The court case last week revealed how bank staff involved in setting Euribor and Libor rates had interacted with other traders at the bank and the verdict may shed fresh light on whether senior management acted appropriately once signs of possible wrongdoing by Deutsche staff emerged.
The court held that Deutsche had failed to implement sufficient controls to prevent different arms of its investment bank from talking to each other.
The judge also said the bank had operated a system with substantial conflicts of interest, since one trader who made a submission for interbank lending rates was also a derivatives trader.
The court said dismissing the traders in 2013 was not warranted given that the bank had failed to issue a formal reprimand in 2011 once illicit communications between different parts of the bank had come to light. (Reporting by Edward Taylor and Marilyn Gerlach; Editing by Robin Pomeroy)
- WTO overcomes last minute hitch to reach its first global trade deal
- Colorado baker discriminated by denying gay couple wedding cake: judge
- Flights delayed as air pollution hits record in Shanghai
- Amish girl in Ohio will not be forced to resume chemo for cancer
- South Africa mourns Mandela, will bury him on December 15 |