deutsche bank

German Regulator Questions Jain Comment on Libor

Anshu Jain Bloomberg
Taking a closer look at what he knew and when.
  • Why it matters

    Why it matters

    If Deutsche Bank’s co-chief executive is found to have known sooner that illegal rate manipulation was underway at the bank, this will further damage the bank’s business and reputation.

  • Facts


    • Seven traders at Deutsche Bank were found to have manipulated the Libor rate, the benchmark rate that banks rely on to charge each other for overnight loans.
    • Deutsche Bank has paid a record fine of €2.2 billion or $2.5 billion to regulators in the United States and the United Kingdom as a result of the traders’ manipulation.
    • At the end of June, co-chief executive Anshu Jain will depart from Deutsche Bank. Jürgen Fitschen, his co-CEO since 2012, will remain on for a year together with John Cryan, who will become the sole CEO in one year.
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Anshu Jain was already due to step from the helm of Deutsche Bank at the end of this month. Now it seems his departure will not come quietly.

In a scathing report into the role that Germany’s largest bank played in the global Libor rate-fixing scandal, Germany’s financial regulator BaFin has challenged statements made by Mr. Jain about when he first heard that traders in his department may have manipulated the interest rate benchmark.

It seems that Anshu Jain’s statements from two years ago about when he first learned of traders in his department involved in manipulating Libor are now coming back to haunt him. BaFin alleges he may have been made aware of the potential scandal within his bank as early as 2008.

Deutsche Bank, Germany’s largest bank, recently received a record $2.5 billion fine from the authorities in the United States and the United Kingdom for manipulation of the Libor rate, a scandal that hit a number of major banks around the world. Traders were found to have colluded to influence the interest rate benchmark, which regulates how much certain banks charge each other for short-term loans across the world.

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