Reuters reports German regulator BaFin has begun a special probe of Deutsche Bank into possible manipulation of LIBOR rates.
As we noted over the weekend, JP Morgan and Bank of America appeared to be submitting the most blatantly fabricated LIBOR rates during the depths of the financial crisis in 2008-2009, yet American regulators such as the SEC, CFTC, and DOJ have yet to even blink from their regularly scheduled porn. While LIEBORGATE appears to be reaching contagion stage in Europe, what will it take for the 1st US bank to be officially implicated?
German markets regulator BaFin is conducting a special probe of Deutsche Bank (DBKGn.DE) as part of a wider investigation into possible manipulation of the London Inter Bank Offered Rate (Libor), two people familiar with the matter said on Friday.
The German regulator declined to comment specifically on whether it was probing Deutsche Bank, but said it was in looking into suspected manipulation of Libor rates by banks.
“We are making use of our entire spectrum of regulatory instruments, so far as this is necessary,” a spokesman said.
Deutsche Bank shares extended losses after the news and traded 4.3 percent lower at 1523 GMT.
Results from the probe are expected to emerge in mid July, one of the sources said.
They said the investigation was a so-called special probe initiated by the regulator, which is more severe than routine probes which are initiated by a third party, for example a bank.