Fines & Penalties Monitor: October 2017

The total amount of fines, penalties and settlements paid out by the 18 largest institutions headquartered in the U.S. and Europe experienced a slight uptick in October compared to September.  The year-to-date total increased from $10.1B to $10.4B.  Three banks paid a combined $351.9MM related to London Interbank Offered Rate (LIBOR) rigging claims.

Citigroup Inc, Deutsche Bank AG and HSBC Holdings Plc have agreed to pay a combined $131.9MM to settle a U.S. class action brought by futures traders accusing them of manipulating the LIBOR benchmark interest rate.  Citi, Deutsche Bank and HSBC agreed to pay $33.4 million, $80 million and $18.5 million, respectively. The money would go to proposed classes consisting of anyone who traded in Eurodollar futures on exchanges between Jan. 1, 2003 and May 31, 2011.

Deutsche Bank AG will pay $220MM for separate claims by several U.S. states that accused the bank of manipulating the LIBOR and other benchmark interest rates.  The agreement was reached with 44 states and the District of Columbia.  Of the $220MM, approximately $213.4MM will be placed into a fund for distribution to those harmed by the misconduct.  This makes Deutsche Bank the second bank to reach a multistate resolution and this issue.  In August 2016, Barclays Plc agreed to a nearly $100MM settlement with 43 states and the District of Columbia.  The states’ attorneys general continue to investigate the other banks.

With two months left to go in the year, the fines, penalties, and settlements total is one-third of that of the year-end 2016 total.  However, there was an uptick in fines during December 2016, which may occur again this year.  Read next month’s blog post to stay informed.



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