Posted on Dec. 2021 at 17:43Updated 29 Dec. 2021 at 18:06
And one last slate to settle the Libor scandal. The German financial authority, BaFin, has imposed a fine of 8.66 million euros on Deutsche bank for weaknesses in its internal controls. She reproaches him for not having, at a certain moment, “Put in place effective control systems” to prevent manipulation of the reference rates of the Euribor interbank markets. The first German bank does not dispute this fine, far from the huge sums it had to pay during the Libor and Euribor scandal discovered in 2011. Deutsche Bank then had to pay $ 4 billion to the American and British authorities. and European.
Its traders were involved with those of Barclays, UBS, Royal Bank of Scotland or Rabobank, in particular in manipulating the rate to which the banks lend each other money. The Libor, whose reputation has been tarnished by business, must officially bow out at the end of 2021. As well as its variation for the Euro zone, the Euribor.
This new sanction relates to the implementation of the European regulation adopted in 2016, in reaction to the scandal. The breaches relate to the period between April 2019 and April 2020, financial sources told the daily “Handelsblatt”. Deutsche Bank has since implemented new control measures agreed with BaFin, the bank said. She continues to grant “Absolute priority in identifying and correcting any weaknesses in the control processes”, she asserts.
For the German bank, it is nevertheless a blow when it still hopes to turn the page of the various scandals which weigh on its accounts for ten years. Last April, BaFin had sanctioned it again for not doing enough to prevent money laundering. The German financial policeman had instructed the audit firm KMPG to broaden the control of the anti-money laundering procedures put in place by Deutsche Bank.
Calming the Fed’s wrath
The bank has already hired a deminer with the entry into office last July of Joe Salama as “Global Head of Financial Crime (AFC) and Head of the Anti-Money Laundering Group”. The maneuver was intended in particular to calm the wrath of the American Federal Reserve (Fed), which has still not loosened its grip on Deutsche Bank.
After the accusations of “greenwashing” brought against its subsidiary DWS, it suspects it in particular of not doing enough to immediately report any compliance problems to the supervisory authorities, in accordance with the agreement “Deferred charge” (Deferred prosecution agreement, DPA) concluded with the Fed.