Deutsche Bank settles US Libor case

Deutsche Bank AG has agreed to pay $240m to settle accusations that it conspired to fix the Libor benchmark interest rate with other banks, according to Reuters.

On Tuesday, the preliminary settlement, which is subject to judicial approval, was disclosed in court papers at the US District Court in Manhattan.

Deutsche Bank is the third consumer bank to reach a settlement of private US antitrust litigation over Libor. Citigroup reached a $130m settlement along similar lines last July, while Barclays Plc settled its Libor lawsuit for $120m in November 2015.

The London Interbank Offered Rate or Libor is a figure used by banks to set rates on huge volumes of credit cards, mortgages, student loans and other transactions and to set the rate of interbank lending.

Investors including Yale University and the city of Baltimore had accused 16 banks of conspiring to manipulate the rate in private litigation initiated in 2011. Worldwide, banks have paid around $9bn to settle Libor-rigging claims.

The head of the UK Financial Conduct Authority has said Libor will be phased out from the end of 2021, due to a lack of data underpinning it.