New York’s bank regulator is pushing Deutsche Bank AG to fire seven traders in London and Frankfurt as part of its record $2.5 billion Libor-rigging settlement.
In London, these include Thierry Barbieux, Shivani Mathur, Gavin Black, Yves Paturel, Matthieu Billiet and Gary-Allen Brown, people with knowledge of the matter said. The seventh is Anne-Eva Thomas in Frankfurt, the people said, asking not to be identified since the discussions are private.
Almost two dozen Deutsche Bank employees associated with the Libor rigging already have left or been terminated, according to a person briefed on the matter. A top official from the U.S. Justice Department said Thursday’s settlement, which included a guilty plea from a U.K. Deutsche Bank subsidiary and a deferred-prosecution agreement with the parent company, doesn’t mean that individuals involved in the Libor-rigging won’t eventually be charged.
“Our Libor investigation is far from over,” said Leslie Caldwell, assistant attorney general for the Justice Department’s criminal division, on a conference call. “We have more work to do, and we’re doing it. Today’s resolution does not provide coverage against any individuals.”
There’s no indication that the seven current employees singled out by Lawsky are the focus of the Justice Department’s continuing probe. Caldwell said the bank’s deferred-prosecution agreement requires the firm to cooperate fully with investigations of individuals.
“We are very serious about prosecuting individuals and intend to keep pursuing that,” she said.
The Justice Department has so far brought criminal charges against 12 individuals from other banks for actions related to Libor rigging, Caldwell said. Three of those individuals have pleaded guilty.
The New York Department of Financial Services said in a statement Thursday that it will require Deutsche Bank to terminate the employees who engaged in what it described as misconduct. Some haven’t been informed they were singled out by the regulator.
“I’m not aware of that,” Mathur, a managing director in London and the most senior of the group, said Thursday when contacted by Bloomberg. The others, who work as directors and vice presidents according to the DFS settlement, didn’t immediately return e-mails and calls to their offices or mobiles seeking comment.
Deutsche Bank declined to comment on the DFS order. The Frankfurt-based lender noted in a separate statement that the investigations found no current or former management-board member to have been involved in or aware of the misconduct.
“We deeply regret this matter,” Co-Chief Executive Officers Anshu Jain and Juergen Fitschen said in the statement. “This agreement marks another step in addressing the past.”
The bank was ordered to pay a record $2.5 billion fine to settle U.S. and U.K. investigations into its role in rigging Libor. The misconduct involved at least 29 Deutsche Bank individuals including managers, traders and rate-submitters, primarily based in London but also in Frankfurt, Tokyo and New York, the U.K. Financial Conduct Authority said.
“We must remember that markets do not just manipulate themselves,” DFS Superintendent Benjamin Lawsky said in the agency’s statement on the settlement. “It takes deliberate wrongdoing by individuals.” .