(MENAFN- AFP) Deutsche Bank is under investigation in New York state for rigging the Libor interest rate, a person familiar with the probe said Monday.
Germany's largest bank is suspected of having participated with other banks in a "vast manipulation of Libor," said the person. The probe is led by Benjamin Lawsky, superintendent of financial services in New York state.
The information about Lawsky's probe was first reported by the Financial Times earlier Monday.
The Lawsky probe comes amid a long-running crackdown by regulators investigating rigging by large banks of the London InterBank Offered Rate, an interbank average rate used to peg millions of interest rate-sensitive contracts and loans around the world.
"We continue to work with the authorities that are reviewing inter-bank offered rates matters," a Deutsche Bank spokeswoman said in an email to AFP, without providing further details.
Lawsky, who has regulatory oversight of foreign banks that operate in New York state, has previously launched probes of Deutsche Bank over alleged manipulation of foreign exchange rates and transactions with clients in countries under US sanctions.
Deutsche Bank has also come under fire from the US Federal Reserve. The German bank was one of just two banks among 31 reviewed whose capital plan was rejected by the Fed earlier this month.
The Fed pointed to "widespread and substantial weaknesses across" capital planning and said it saw problems in governance, internal controls and risk assessment, among other issues.
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