Deutsche Bank reaches agreement with European Commission as part of a collective settlement on interbank offered rates

The settlement covers investigations into the trading of Euro interest rate derivatives (EIRD) and Yen interest rate derivatives (YIRD). As part of the settlement, Deutsche Bank has agreed to pay EUR 466 million for EIRD and EUR 259 million for YIRD, or EUR 725 million in total.

The settlement amount reflects, in particular, the high market share held by Deutsche Bank in the markets investigated.

Jürgen Fitschen and Anshu Jain, Co-Chief Executive Officers of Deutsche Bank, said: "Today’s settlement marks one important step in our efforts to resolve the Bank’s legacy issues. The settlement relates to past practices of individuals which were in gross violation of Deutsche Bank’s values and beliefs. Acting with integrity is a core value at Deutsche Bank, and we expect every employee to adhere to it. We are attaching the highest institutional importance to ensuring that this type of misconduct does not happen again."

In response to matters that came to light during its internal investigations, the Bank has undertaken significant measures to enhance its systems and controls in the relevant business and infrastructure functions, including the creation of an independent Benchmark Submission Oversight function which now oversees the Bank’s interbank offered rates submissions and reports to Risk Management. As part of Strategy 2015+ the Bank is investing EUR 1 billion to elevate its systems and controls to best in class, including by increasing the headcount in its control functions.

The settlement amount is already substantially reflected in the Bank’s existing litigation reserves and no material additional reserves will be taken for this settlement