FRANKFURT Jan 10 German regulator BaFin's probe
of Deutsche Bank over possible manipulation of
interbank lending rates will be completed by end-March, two
people familiar with the matter told Reuters.
BaFin is conducting a so-called special probe - the most
severe form of investigation it can undertake - into Deutsche
Bank as part of a broader global investigation of interbank
Regulators in Europe, Japan and the United States have been
examining more than a dozen big banks over suspected rigging of
the London interbank offered rate (Libor).
Deutsche Bank, which declined to comment, has said
previously it has been cooperating with the U.S. Department of
Justice, the U.S. Securities and Exchange Commission, the
Commodity Futures Trading Commission, and the European
Commission on Libor.
These inquiries relate to periods from 2005-11.
An internal probe at Deutsche Bank found two former traders
may have been involved in colluding to manipulate benchmark
interest rates, sources told Reuters in July, adding there was
no indication of failure at the top of the bank.
Libor rates, compiled from estimates submitted by large
banks, are used to determine interest rates on trillions of
dollars worth of contracts around the world.
British lender Barclays agreed to pay a fine of
more than $450 million, and Swiss bank UBS agreed to
pay $1.5 billion to regulators over its submissions of interbank
As the credit crisis intensified from 2006-08, allegations
started mounting that Libor no longer reflected the cost banks
were paying for funds. Authorities have been examining whether
traders tried to influence the rate to profit on bets on the
direction it would go.
The daily Libor poll asks banks at what rate they think they
will be able to borrow money from each other in 10 major
currencies and for 15 borrowing periods ranging from overnight
loans to 12 months.
Libor rates submitted by banks are compiled by Thomson
Reuters, parent company of Reuters, on behalf of the British