While corporate watchdogs hailed the record $2.5 billion settlement paid by Deutsche Bank to U.S. and U.K. authorities for its rate-rigging role in the massive LIBOR scandal, some noted that the fine—while large—suggests that some institutions are still considered "too big to jail."
Authorities announced Thursday that Germany's biggest bank would pay $2.5 billion in penalties, a record for cases involving interest rate fraud, which have already targeted banking behemoths like Barclays and UBS. Officials said the wrongdoing at Deutsche Bank lasted from 2005 to 2011 and touched employees in London, Frankfurt, New York, and Tokyo.
The New York Times reports that Deutsche Bank "also agreed to accept a criminal guilty plea for the British subsidiary at the center of the case. It is the most significant banking unit to accept a criminal plea in the long-running investigation into the manipulation of the London interbank offered rate, or LIBOR."
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Bartlett continued: "This settlement, which involves no jail time for any traders, seems out of sync with the problems identified. To make matters worse, many of the traders responsible for the frauds remain employed at Deutsche Bank. The DOJ claims that it may still prosecute individuals, and we hope it will pursue such work. To date, some traders at other firms such as Rabobank have been convicted, but no senior officers of any of the banks involved in the LIBOR case have faced charges."
Indeed, as journalist Valentin Schmid points out at Epoch Times, "Insider trading in individual stocks seems minute in comparison, yet many people have been jailed for 10 years or more. Time criminals working for large international banks are given the same treatment." Full story...
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Authorities announced Thursday that Germany's biggest bank would pay $2.5 billion in penalties, a record for cases involving interest rate fraud, which have already targeted banking behemoths like Barclays and UBS. Officials said the wrongdoing at Deutsche Bank lasted from 2005 to 2011 and touched employees in London, Frankfurt, New York, and Tokyo.
The New York Times reports that Deutsche Bank "also agreed to accept a criminal guilty plea for the British subsidiary at the center of the case. It is the most significant banking unit to accept a criminal plea in the long-running investigation into the manipulation of the London interbank offered rate, or LIBOR."
(...)
Bartlett continued: "This settlement, which involves no jail time for any traders, seems out of sync with the problems identified. To make matters worse, many of the traders responsible for the frauds remain employed at Deutsche Bank. The DOJ claims that it may still prosecute individuals, and we hope it will pursue such work. To date, some traders at other firms such as Rabobank have been convicted, but no senior officers of any of the banks involved in the LIBOR case have faced charges."
Indeed, as journalist Valentin Schmid points out at Epoch Times, "Insider trading in individual stocks seems minute in comparison, yet many people have been jailed for 10 years or more. Time criminals working for large international banks are given the same treatment." Full story...
Related posts:
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