documents and 850,000 audio files.
It said it has begun to make a series of changes to its procedures and controls, including:
- Creating a benchmark and index control group;
- Completely segregating duties between different IBOR submitters and traders; and
- Upgrading its systems and controls so it can more quickly identify electronic and voice communications that are of interest to regulators and to the Bank.
Major blow
Discussing the fine, Mark Taylor, dean of Warwick Business School, said: “This is a major blow for Deutsche Bank both financially and for its reputation, but the size of the fine is an important step in shifting the culture of the financial sector.
“The Libor fixing scandal revealed that a major reference interest rate in the world’s leading financial centre was being manipulated to create bank profits and take money from investors – including our pension funds. Deutsche Bank compounded its crime by not being fully co-operative in the ensuing investigation.
“The severity of the fine imposed shows the importance the regulatory authorities attach to restoring belief in the integrity of the City of London. Libor is now set by NYSE Euronext, and so an exact replay of the scandal is no longer possible, but a shift in culture in the City is necessary in order to ensure that something similar doesn’t happen in another guise.
“Imposing heavy penalties – together with the accompanying adverse publicity – is one way of shifting that culture.”
