More than 20 major international financial institutions and banks, including Barclays, HSBC, Citigroup and Deutsche Bank, have been drawn into a global investigation for the role they played in manipulating the internal rate of return (LIBOR) for many years up to 2012.
Libor is one of the most important benchmark interest rates in the world, setting interbank rates and setting interest rates on loans of over $350,000 billion worldwide. Only small adjustments ensured large sums in favor of the banks.
– This is historical
Several of them were summoned and tried in the United States, before several settlements were reached. These discoveries led to the resignation of Barclays senior management.
Deutsche Bank, Germany’s largest bank, reached a $2.5 billion settlement with the US and UK governments in 2015.
The US Commodity Futures Trading Commission (CFTC) has now confirmed that an alert of approximately $200 million has been paid for information submitted in connection with the investigation.
“The alert information led the CFTC to significant and direct evidence of wrongdoing,” the regulatory unit wrote in a statement.
The decision to pay was made on Thursday.
– This is historical. I don’t know of any other bonus in the US whistleblower program that has been this much, says attorney Erica Colton at the law firm Phillips & Cohen, which specializes in this type of case, financial times.
According to the business newspaper, a former employee of Deutsche Bank received a bonus of more than 1.6 billion Norwegian kroner.
It’s an eye-catching bonus, says attorney Paul Pantano of Willkie Farr & Gallagher.
Wall Street Warning
It has been a long battle for the whistleblower, who according to the Wall Street Journal served as director of Deutsche Bank. The US regulator initially refused to pay a bounty to the whistleblower.
We are very pleased that the CFTC has reversed its previous decision and reversed the way they thought it was. Attorney David Covell at Kirby McInerney, who is representing the whistleblower, says he says so much about people there that they don’t feel compelled to doubt wrong decisions about amounts at risk. The Wall Street Journal.
In total, more than $300 million has been paid to whistleblowers since the scheme was introduced in 2014. Whistleblowers can receive between 10 and 30 percent in fines imposed on financial institutions. The previous record was $114 million from the Danish Financial Supervisory Authority.
This bonus sends a powerful message to all fraudsters in the business world that their employees can report fraud and other crimes to the police. Let this be a warning to anyone on Wall Street who scams to make money. Attorney Stephen Cohn, who is also president of the National Whistleblower Center, says the new whistleblower laws could and will lead to your disclosure to the professional site. compliance week.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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