The Commodity Futures Trading Commission has awarded approximately $ 200 million to former Deutsche Bank employees who have expressed concern about manipulating the Libor interest rate benchmark, recording the largest payment ever under the US whistleblower program.
Derivatives regulators in the United States have said payments have been made for “timely original information” that has already contributed significantly to “public investigations.”
This led to “successful enforcement actions, as well as the success of two related actions by US federal and foreign regulators,” the CFTC said. statement.. Authorities did not identify whistleblowers, their employers, or related regulatory measures.
But for those who are familiar with this issue, this award is $ 2.5 billion settlement It was discovered to have been tampered with by bankers 10 years ago and was paid by Deutsche Bank next year after a regulatory investigation into the manipulation of Libor, a disgraceful interest rate benchmark that underpins declining global finance.
Barclays, Deutsche Bank and Societe Generale were one of the banks that reached a settlement with CFTC and other institutions in the scandal.
Law firm Kirby McInerney statement Identify whistleblowers as clients, “provide extensive information, documents and transaction information in 2012” and discuss “manipulating critical financial benchmarks used by global banks” by CFTC and US and foreign regulators. The investigation has started.
“Manipulating financial benchmarks enriches manipulators at the expense of market participants,” said David Kovel, managing partner of Kirby McInerney.
According to Kirby McInerney, the $ 200 million payment is the largest under the whistleblower program established by the Dodd-Frank Act, which includes the CFTC and the Securities and Exchange Commission, and other schemes, including the Internal Revenue Service.
“It’s historic,” said Erica Kelton, a whistleblower attorney at Philips & Cohen. “I’ve never known any other award in such a big US whistleblower program.”
Since issuing its first award in 2014, the CFTC has awarded more than $ 300 million to whistleblowers who are eligible to receive 10% to 30% of the fines collected.
However, one of the CFTC’s commissioners, Dawn Stump, said for the first time for the CFTC that it did not approve some of the payments “due to the collection of sanctions by foreign regulators,” and the latest awards are already controversial. calling.
The stump said authorities need to be “specially careful” about penalties collected by foreign authorities, as they will divert funds available to US regulators and the US Treasury.
“This is a spectacular award,” said Paul Pantano, senior counsel at Willkie Farr & Gallagher, saying the reduction in funding available to whistleblowers reporting activity in the U.S. market is a “concern.” I added.
Deutsche Bank whistleblower paid $ 200 million in record compensation
Source link Deutsche Bank whistleblower paid $ 200 million in record compensation