Deutsche Bank may be told as soon as this month by the German financial regulator to improve its controls to prevent a repeat of attempts to manipulate benchmark interest rates, according to a person familiar with the matter.
Bloomberg News reports that Bafin is finalising its first report into the rigging of Libor and similar benchmarks and will submit it to the Frankfurt-based lender as soon as this month, said the person, who asked not to be identified because the review isn’t public.
Bafin will present its findings to Deutsche Bank management, telling them to adhere to standards set by the regulator, the person said.
The report is part of a broader investigation by Bafin into allegations that traders at Deutsche Bank tried to manipulate rates. Under its rules, Bafin cannot publish the findings or disclose actions it takes on individual banks without the lender’s consent. The Frankfurt-based regulator will oversee how the measures are implemented.
The move may bring the bank closer to facing fines from U.S., U.K. and EU regulators, who are waiting on the German watchdog to finish their reviews. Barclays, UBS and Royal Bank of Scotland have paid a total of about $2.5bn in fines for colluding to rig benchmark interest rates for profit or to mask their true cost of borrowing.
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