On April 23, DB Group Services (UK) Limited, a subsidiary of Deutsche Bank, agreed to plead guilty to wire fraud, and Deutsche Bank entered into a deferred prosecution agreement for their roles in manipulating the London Interbank Offered Rate (LIBOR). AAG Caldwell and AAG Bill Baer jointly announced the resolution. Collectively, they will pay $775 million in criminal penalties. According to the agreements, Deutsche Bank derivatives traders requested that LIBOR submitters at various banks submit contributions that were favorable to their trading positions. The traders communicated with Deutsche Bank employees and employees at other banks to manipulate the LIBOR rates. This behavior affected the LIBOR fix and defrauded counterparties who were unaware of the traders’ actions. Deutsche Bank is the sixth bank to resolve an investigation into the manipulation of benchmark rates with DOJ. Twelve individuals have also been charged as a result of the investigation. DOJ Press Release
