Interest rate rigging leads to closer scrutiny
Markets regulator Bafin has extended its scrutiny of German banks by investigating more lenders following a global interest rate rigging scandal, sources say.
Eight German banks, which participate or have participated in the rate for the euro zone, known as Euribor, were ordered to submit details of how they calculate the interest rate and monitor its mechanisms, according to the regulatory sources, who are familiar with the details of the investigation.
Bafin set a deadline of last Thursday for the submissions to be made but the results of the investigation are not yet known. It is not clear when the results will be available.
German banks participating in Euribor include Deutsche Bank, Commerzbank, DZ Bank, LBBW, BayernLB, Helaba, NordLB and Landesbank Berlin.
Bafin is already conducting a so-called special probe – the most severe form of investigation it can undertake – into Deutsche Bank over suspected manipulation of interbank lending rates. Investigators in the United States, Europe and Japan are examining more than a dozen big banks over suspected rigging of the London Interbank Offered Rate (Libor). – (Reuters)