from the only-responsible-for-the-profits-not-the-crimes dept.
Deutsche Bank has nominated its chairman for a second term after an internal probe cleared him of accusations that he was partly to blame for the bank's poor cooperation with authorities in a probe into rate-rigging, a source close to the bank said. Paul Achleitner was nominated at a meeting of the lender's supervisory board in late October, the source said on Sunday. Shareholders will vote on the extension of his term at the annual meeting next spring.
Several shareholders said on Friday that a renewal of Achleitner's contract was imperiled by Deutsche's poor earnings and faltering share price. "The bank needs stability and continuity," said the source about his nomination. Last year, Germany's largest lender agreed to settle a case over the alleged manipulation of interbank rates such as Libor for a record $2.5 billion with U.S. and British authorities, which had accused the bank of obstructing their investigation.
[...] A motion calling for an additional external investigation was voted down at the annual general meeting in May. Any evidence of wrongdoing would have made it an uphill battle for Achleitner to secure a second term as chairman. Deutsche is still investigating some former top executives, the paper said.
What was the Libor rate-rigging scandal?
The Libor scandal was a series of fraudulent actions connected to the Libor (London Interbank Offered Rate) and also the resulting investigation and reaction. The Libor is an average interest rate calculated through submissions of interest rates by major banks across the world. The scandal arose when it was discovered that banks were falsely inflating or deflating their rates so as to profit from trades, or to give the impression that they were more creditworthy than they were. Libor underpins approximately $350 trillion in derivatives. It is currently administered by NYSE Euronext, which took over running the Libor in January 2014.
Related: Three Convicted in Libor Rigging Trial
Deutsche Bank Nearing Multi-Billion Dollar Settlement with U.S. Dept. of Justice
Related Stories
Three former Barclays employees have been found guilty of rigging the Libor interest rate between 2005 and 2007.
[...] The Libor rate is used by banks to set prices of financial products. It stands for the London inter-bank offered rate, and underpins trillions of pounds worth of loans and financial contracts for households and companies across the world.
The jury was unable to reach a verdict, after nearly two weeks of deliberation, in relation to two other defendants, Ryan Reich, 34, and Stelios Contogoulas, 44.
[...] In May, it was revealed that a sixth employee of Barclays, Peter Johnson, had pleaded guilty to conspiring to manipulate the rate.
[...] Last year, Tom Hayes became the first individual to be convicted in the Libor fixing scandal, initially sentenced to 14 years in prison although that was later reduced to 11.
But in January five city brokers were cleared of helping Hayes to manipulate the Libor rate.
Source: BBC
Barclays declined to comment.
http://www.reuters.com/article/us-usa-stocks-weekahead-idUSKCN1202O8
Deutsche Bank will likely cast a pall over equity markets next week as the largest German lender navigates a possible multi-billion dollar settlement with the U.S. Department of Justice [DOJ] over the sale of mortgage-backed bonds. Deutsche shares traded in the United States hit a record low on Thursday, falling as much as 24 percent since the DOJ asked the bank to pay $14 billion to settle charges related to its sale of toxic mortgage bonds before the financial crisis.
But the stock had its best day in five years Friday, on record volume, after news agency AFP reported that Deutsche was nearing a much-lower $5.4 billion settlement with the DOJ. Analysts at Morgan Stanley estimated Deutsche could pay about $6 billion to settle with the DOJ.
(Score: 1) by shrewdsheep on Monday November 21 2016, @12:56PM
Whatever these internal investigations are worth. There was at least one step-down from the investigating committee due to pressure on account of being overly diligent [https://www.welt.de/wirtschaft/article154901954/Deutsche-Bank-Finanzchef-verspricht-weiter-Aufklaerung.html [www.welt.de]].
(Score: 2) by dlb on Monday November 21 2016, @05:17PM
(Please excuse my high-school German...and poor attempt at humor!)
Anyway, I couldn't find an English translation on welt.de. Do you know if there is one?
(Score: 2, Insightful) by fustakrakich on Monday November 21 2016, @04:26PM
Whoever says crime doesn't pay is an idiot.
La politica e i criminali sono la stessa cosa..
(Score: 0) by Anonymous Coward on Monday November 21 2016, @07:38PM
Deutsche Bank Chairman Nominated for Second Term After investment in owning hundreds of millions of dollars of the presumed bad debt of one "Donald Trump" turns into smart leverage on US Presidency.