Deutsche Bank may announce on Thursday a settlement of more than 2 billion euro (US$2.15 billion) to resolve US and UK investigations into manipulation of a benchmark interest rate by the bank’s traders, the Wall Street Journal reported.
As part of the settlement of charges related to London interbank offered rate (Libor), Deutsche Bank will agree to plead guilty and acknowledge that its internal monitoring systems were inadequate, the report said, citing people familiar with the matter.
In preparation for the record fine, Deutsche Bank said on Wednesday it expects to book litigation costs of some 1.5 billion euro in the first quarter when it announces results next week.
Deutsche Bank is the latest of several large European banks to be punished by US regulators in recent months.
Earlier this year, BNP Paribas paid nearly US$9 billion and pleaded guilty to violating US sanctions. Commerzbank, Germany’s second-largest lender, shelled out US$1.45 billion in March in a similar case.
In the Libor case, rivals including Barclays, UBS and Royal Bank of Scotland agreed in 2012 and 2013 to pay more than US$3.5 billion to settle similar allegations from authorities around the world.
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