Friday October 22, 2021
200 million for information
Record amount for Deutsche Bank whistleblowers
It is one of the biggest financial scandals of the past few years: employees of major banks systematically manipulate important interest rates. An ex-employee of Deutsche Bank takes the investigation a decisive step forward. For this he is now receiving a record reward from the US authorities.
According to insiders, the US regulatory agency CFTC pays a record reward of nearly $ 200 million for uncovering a scandal over manipulated interest rates, according to an ex-employee of Deutsche Bank. The US Commodity Futures Trading Commission (CFTC), which is responsible for controlling the derivatives markets, announced the reward in a notice, but did not provide any further details.
During the financial crisis it became known that for years there had been illegal agreements between the employees of several large banks that had influenced important reference interest rates such as the Libor rate in their favor. In the past decade, authorities around the world imposed fines running into billions of euros against banks and traders and initiated criminal proceedings.
According to two people familiar with the case, the whistleblower was formerly employed by Deutsche Bank. The money house declined to comment on the information. The law firm Kirby McInerney announced that the person she represents had been awarded the record amount because she had provided extensive information and documents in 2012.
Whistleblower Program Payoff Jeopardizes?
Shortly after the investigation was opened, he provided the authorities with documents that led to immediate evidence of misconduct. In addition, other authorities could have been involved, as the “Frankfurter Allgemeine Zeitung” reported.
This has accelerated investigations by the CFTC and a foreign authority. She did not give the person’s name. A law was recently passed in the United States to maintain the CFTC whistleblower program.
The “Wall Street Journal” reported in May that the program was at risk due to an expected high payout to a Deutsche Bank manager. This is related to the $ 2.5 billion settlement that Deutsche Bank agreed with supervisors a few years ago because of the Libor manipulation. The CFTC declined to comment, citing the agency’s policy. After the scandal, work is now being done on a replacement for the Libor interest rate.