Lack of organisation at Deutsche Bank may have led to rate rigging

Deutsche Bank - External

Organisational lapses by Deutsche Bank provided a working environment that could have led to the rigging of interest rates, a German labour court said in a written judgement released this week.

Reuters reports that the document stems from the court's ruling in September when four traders won a case for wrongful dismissal against the bank.

The court ordered Germany's flagship lender to reinstate the traders, which the bank had accused of violating company policy by inappropriately communicating with other traders at the bank over the setting of interbank lending rates.

In the judgement, the Frankfurt labour court said Deutsche Bank had itself contributed to the problems which it had blamed the traders for when dismissing them.

'It (Deutsche Bank) accuses (traders) of communicating with (other) traders, but has encouraged a close integration of its traders and the people who submit the rates', the court said. 'It criticises a behaviour that it made possible in the first place'.

Deutsche Bank said on Thursday that it regretted the court's decision and was considering whether to appeal.

The judgement also pointed out that staff responsible for submitting information about inter-bank lending rates had also been responsible for trades.

To access the complete Reuters article hit the link below:

Deutsche Bank lapses provided environment for rate rigging - court

UBS buys Stabfund from SNB for $3.762 billion

S&P lowers France credit rating, cites slow reform pace

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News