Deutsche Bank, Ohio Settle LIBOR-Manipulation Allegations

COLUMBUS, OH — Ohio is one of 45 states that has settled with Deutsche Bank for its fraudulent and anti-competitive business practices. The bank reportedly manipulated the London interbank rate, or LIBOR, an interest rate that can impact consumers around the world.

As part of the settlement, the bank has agreed to pay $220 million. Of that sum, $213 million will be used to refund governments and nonprofit organizations that had Libor-based swaps and investments through Deutsche.

Ohio had several organizations that were impacted by Deutsche's manipulations. Among the impacted groups were pension funds, hospital systems and universities. Those groups will be notified if they could be eligible for reimbursement funds.

The LIBOR rate is used by banks around the world as a benchmark for loan interest rates. Deutsche would alter its LIBOR submissions, to help its traders and traders for other banks, to benefit trading positions.

The settlement documents show frequent communications between different departments at Deutsche, all working in unison to move the LIBOR-rate.

How did that impact groups in Ohio? Organizations would conduct swaps and other investment actions through Deutsche, without knowing the bank was manipulating the interest rate or colluding with other banks to do so. That could benefit Deutsche's traders, possibly at the expense of organizations from Ohio and other states.

Deutsche is the second bank to settle a multi-state Libor-setting manipulation claims. Among the other states named in the settlement are: 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, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

The full settlement for the case can be found by clicking here.

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