Boston, MA 08/05/2014 (wallstreetpr) – The problems for Deutsche Bank AG (USA) (NYSE:DB) are far from over. The financial regulator of Germany, BaFin has extended investigations into the matter of manipulation of benchmark interest rates. Ernst & Young LLP will cover the investigation. There are almost ten specified areas which remain under close watch by the auditors. Anshu Jain, the co-chief executive officer, who came to know about the expected manipulation, looks after the six specified key areas.
Manipulation cases
The financial regulators are investigating various matters pertaining to the manipulation of financial benchmarks across the globe. The manipulation can be of Libor, or of gold prices and currency exchange rates. There were as many as six institutions who were fined in month of December for rigging Euribor. It is the leading benchmark money-market rate for yen Libor and the euro. It is a measurement of how banks charge for loans in Yen.
The legal writs
Deutsche Bank AG (USA) (NYSE:DB) has received official writs from the various regulatory and law enforcement bodies in North America, Europe and Asia Pacific. The subpoenas were regarding the interbank offered rates including Tokyo Interbank offered rate; Euro Interbank offered rate, and London Interbank offered rate and other interbank offered rates.
Investigating the matter
Deutsche Bank AG (USA) (NYSE:DB) is said to be cooperating with these legal investigations. It has conducted internal reviews to find out the truth in allegations. It has reported that no former or current member of the management board is involved into inappropriate behavior or actions pertaining to interbank offered-rates matters.
BaFin will investigate the matter in all aspects. It will present the final report this summer. The latest document by the regulatory body shows that the digital records related to Libor investigation were smashed in April 2012. The regulatory body wants to find out it Deutsche Bank was aware of the destruction of records. The matter is gaining more and more attention, and it will be tough for the bank to come out of the matter.
