The Deutsche Bank whistleblower whose information helped U.S. and U.K. regulators build their cases against the German bank was awarded nearly ~$200M for their role in the probe. This was the largest ever payout by the Commodity Futures Trading Commission (CFTC), which settled enforcement actions against Deutsche Bank in 2015.
- Deutsche Bank was manipulating the London interbank offer rate (LIBOR), which sets a benchmark interest rate for short-term loans used by global banks and financial institutions.
- Rigging LIBOR allowed Deutsche Bank traders and others to profit from derivatives trades — known as swaps — that were priced off of movements in the LIBOR.
- Deutsche Bank agreed to pay ~$2.5B in settlements in 2015, including an $800M fine from the CFTC.
- The WSJ has reported that the whistleblower was a former executive.
- This person gave crucial information to an ongoing investigation into Deutsche Bank.
- David Kovel, an attorney whose firm represents the whistleblower, said:
- "The kind of information he provided was of the sort that was very hard to get if you don’t know where to look in a big financial organization."