Deutsche Bank paying to settle interest rate case

ALBANY, N.Y. — Deutsche Bank has agreed to pay $2.5 billion in a settlement with U.S. and British authorities over the manipulation of benchmark interest rates used globally for its own financial gain.

The U.S. Justice Department said Thursday that the subsidiary DB Group Services UK Ltd. has agreed to plead guilty to wire fraud.

Deutsche Bank has fired “numerous” employees who were involved and is installing an independent monitor at its New York branch, according to New York’s Department of Financial Services.

The department said Thursday at least seven others are being terminated as it has insisted — four London-based directors, a managing director and vice president, and a vice president in Frankfurt, where the bank has its headquarters.

The bank said Thursday that it has dismissed or disciplined employees involved and strengthened its controls. It said no current or former member of its management board was involved or aware of the trader misconduct.

Jurgen Fitschen and Anshu Jain, co-chief executives, said: “We deeply regret this matter but are pleased to have resolved it. The bank accepts the findings of the regulators.”

The penalty includes $600 million to New York, $800 million to the Commodities Futures Trading Commission, $775 million to the U.S. Justice Department and $340 million to Britain’s Financial Conduct Authority.