Deutsche Bank Said to Suspend Five Traders in Rates ProbeNicholas Comfort
Deutsche Bank AG, Europe’s biggest bank by assets, suspended five traders in Frankfurt amid an internal probe into alleged attempts to rig interbank lending rates, according to a person familiar with the matter.
The traders, who were suspended yesterday, counted rates submissions among their responsibilities, said the person, who asked not to be identified because the decision hasn’t been made public.
Regulators from Canada to Switzerland are investigating whether more than a dozen banks, including Deutsche Bank, colluded to rig lending rates. Royal Bank of Scotland Group Plc, Britain’s biggest publicly owned lender, was fined about $612 million by U.S. and U.K. authorities today.
Deutsche Bank declined to say whether it had suspended any employees. It repeated in an e-mailed statement that it will suspend or dismiss traders found to have acted inappropriately.
The company said in July that an internal investigation found misconduct by individual employees of the bank related to interbank rates, though no wrongdoing by any current or former members of the board. Deutsche Bank dismissed two traders at the end of 2011 for suspected manipulation of the rates.
The bank probably won’t resolve all issues pertaining to alleged manipulation this year, Stephan Leithner, the company’s management board member for legal affairs, said last week.