It would be nice to have £53m in bonuses to lose!
One of Deutsche Bank’s best-paid traders is said to have lost around $53m in bonuses after he was let go for allegedly trying to rig interest rates, three people with knowledge of the move said.
Bloomberg reports that Deutsche Bank dismissed the trader in December 2011, claiming he colluded with a Barclays trader to manipulate rates and boost the value of his trades in 2006 and 2007, said the people, who requested anonymity because they weren’t authorized to speak publicly.
'Upon discovering that a limited number of employees acted inappropriately, we sanctioned or dismissed those involved and clawed back all of their unvested compensation', Deutsche Bank spokesman Michael Golden said in a statement. 'To date we have found no link between the inappropriate conduct of a limited number of employees and the profits generated by these trades'.
Regulators are investigating claims that traders at more than 16 firms manipulated submissions used to set benchmarks such as Euribor to profit from bets on interest-rate derivatives. Ex-traders say their firms had no rules governing how Euribor and Libor should be set and that managers were aware that traders, who stood to benefit from where the rate was fixed, were on occasions making submissions to the benchmarks.
Hit the link below to access the complete Bloomberg article: