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Deutsche Bank to pay $220 mln in U.S. Libor probe

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Deutsche Bank to pay $220 mln in U.S. Libor probe

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(Reuters) – Deutsche Bank AG <DBKGn.DE> has agreed to pay $220 million (£116 million) to settle U.S. regulatory charges that it defrauded government and nonprofit entities by manipulating Libor and other benchmark interest rates. The settlement between the German bank and attorneys general of 44 U.S. states and Washington, D.C. was announced on Wednesday by New York Attorney General Eric Schneiderman. Deutsche Bank is the second bank to settle, joining Britain’s Barclays Plc <BARC.L>, which reached a $100 million settlement in August 2016. Both agreed to cooperate in the multistate probe into several banks, which is continuing. “This settlement resolves the bank’s final pending U.S. regulatory inquiry related to Libor,” Deutsche Bank spokesman Troy Gravitt said in a statement. Banks use Libor, or the London Interbank Offered Rate, to set rates on hundreds of trillions of dollars of credit card, mortgage, student loan and other transactions, and to determine the cost of borrowing from one another. The attorneys general said that from as early as 2005 and continuing through the global financial crisis, Deutsche Bank made false or misleading Libor submissions, tried to influence other banks’ submissions to benefit its own trading positions, and concealed the deception from customers. According to the settlement agreement, $213.35 million will go to entities eligible for restitution, and the rest will cover costs incurred in the investigation.

(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama)
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