IPERS to receive payment from Deutsche Bank in multistate settlement

The probe found that Deutsche Bank defrauded government entities and charities by making false submissions to set benchmark rates, including Libor, and trying to influence submission proposed by other banks. “It hurt entities in Idaho, which affected taxpayers around the state.

Other states joining NY in the Deutsche Bank settlement include: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

Libor, which is set by leading financial institutions through regular submissions of inter-bank rates, influences the rates used for borrowing on credit cards, mortgages, student loans and other transactions.

Forty-five state attorneys general participated in the investigation that revealed that Deutsche Bank manipulated LIBOR several ways. At times, Deutsche Bank LIBOR submitters and supervisors expressly acknowledged and indicated they would work to implement the requests they received. Deutsche Bank employees did not disclose these facts to the governmental and not-for profit counterparties with whom Deutsche Bank executed LIBOR-referenced transactions even though these rates were material terms of the transactions. They also had reason to think the LIBOR rates submitted by the banks did not reflect the actual borrowing costs of Deutsche Bank and other banks. "In the process, they left government entities and non-profits in California hanging out to dry".

An investigation into other banks continues.

"Pennsylvania school districts, municipalities, and nonprofit organizations were cheated out of millions of dollars by Deutsche Bank's fraudulent manipulation of interest rate benchmarks", said Shapiro in the statement.

Deutsche Bank has agreed to pay $220m (£150m) to resolve a U.S. investigation into its manipulation of interest rates.

A U.S. court in March ordered a Deutsche Bank unit to pay $150 million as part of a global $2.5 billion Libor manipulation settlement reached in 2015 with authorities in Washington, London and NY state.



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