Deutsche Bank Next Victim in Libor Probe?

Patrick Clark — Fri, 06 Jul 2012 12:24:05 -0400

Barclays, of course, was always just the start. While British politicians raked CEO Bob Diamond over the coals this week, investors wrung their hands over the price Barclay paid by being the first bank to settle with regulators over efforts to manipulate Libor, and pundits wondered which bank would be implicated next.

Now it appears that when the other shoe drops, Deutsche Bank will be under it. German markets regulator BaFin has launched a special probe into Deutsche's involvement in the rate-rigging scandal, with results of the inquiry expected to emerge in the middle of July, Reuters reports.

German markets regulator BaFin is conducting a special probe of Deutsche Bank (DBKGn.DE) as part of a wider investigation into possible manipulation of the London Inter Bank Offered Rate (Libor), two people familiar with the matter said on Friday.

...

They said the investigation was a so-called special probe initiated by the regulator, which is more severe than routine probes which are initiated by a third party, for example a bank.

Deutsche, which revealed in March that U.S. and European regulators had requested information in connection to rate-rigging, referred Reuters to its most recent quarterly report, which noted that various regulators had subpoenaed or otherwise requested information.

Shares fell 5.3 percent on the news.

Observer » Deutsche Bank Next Victim in Libor Probe?

Deutsche Bank Next Victim in Libor Probe?