Deutsche Bank AG co-Chief Executive Officer Anshu Jain said he was sickened by the manipulation of interbank lending rates.
“The Libor affair sickens us all,” Jain told clients and investors during a panel discussion in Koenigstein, a town near Germany’s financial capital Frankfurt, late yesterday. “I don’t think any CEO thought this was a possibility. It sickens me the most of all the scandals.”
Regulators from Canada to Switzerland are investigating whether more than a dozen banks, including Deutsche Bank, were colluding to rig the rate. Deutsche Bank says it has set aside reserves for possible financial damages related to Libor, without specifying their value.
Jain, 50, declined to comment in detail about the alleged rigging of Libor, the benchmark for more than $300 trillion of securities, citing ongoing probes and litigation. It is clear that the level of wrongdoing varied across banks, he said.
Barclays Plc CEO Bob Diamond resigned in July after his bank said it manipulated the rate. The firm was fined 290 million pounds ($459 million) by regulators. UBS AG, Switzerland’s biggest bank, is paying 1.4 billion Swiss francs ($1 billion) for trying to rig global interest rates.
Deutsche Bank said in July that an internal investigation found misconduct by individual employees, though no wrongdoing by any current or former members of the board.