Deutsche Bank will pay U.S. and British authorities $2.5 billion and its London subsidiary will plead guilty to wire fraud for manipulation of benchmark interest rates, U.S. authorities said on Thursday.
As part of the deal, Germany’s largest bank also entered into a deferred prosecution agreement with the U.S. Justice Department and admitted its role in manipulating the London Interbank Offered Rate (Libor).
The penalty follows a seven-year investigation into how banks secretly conspired to rig benchmark interest rates to their benefit.