Banker celebrates the old bounty party, but this time the organizer is paying

Banker celebrates the old bounty party, but this time the organizer is paying

The twin towers of Deutsche Bank headquarters in Frankfurt.Bild Bloomberg via Getty Images

In a press release, this US organization stated last week that this is its highest wage ever. The FSA refers to a whistleblower whose specific, reliable and timely information has contributed significantly to an investigation already underway. according to The Wall Street Journal The lucky one is a former employee of Deutsche Bank. His lawyers assert that in 2012, their client provided “information, documents and commercial data” to the authorities in the United States and Great Britain about the so-called Libor case.

Rabobank

Libor, the “London Interbank Offered Rate,” is the interest which banks charge each other for loans. It is one of the pillars of the financial world. For years, Libor and related rates (such as Euribor) have been used to set the rate of interest on thousands of billions of credits. The fuss grew when it became clear that this had been tampered with in the wake of the credit crunch.

It wasn’t very difficult. Liborrente is not created by the supply and demand of money. It was the result of a daily tour of employees of eighteen large banks. They could manipulate the interest rates that they conveyed to their heart’s content. From the Netherlands, Rabobank was involved in this absurdity. In 2013, the bank was fined 774 million euros for this by US, British and Dutch regulators.

bonus party

Deutsche Bank’s penalty was much higher. In 2015, Germany’s largest private bank paid out $2.5 billion. This also explains the astronomical amount that whistleblowers receive. Tippers can receive anywhere from 10 to 30 percent of the fine collected from the organizer. The old record was 114 million dollars (98 million euros).

The approach introduced in 2010 was to prevent financial scandals like Bernie Madoff, whose paranoid pyramid scheme deceived thousands of investors. The flip side is that savvy bankers can now theoretically hold a bonus party twice. The first is on the account of the bank, the second is paid by the regulator. Although the premiums come from the fine pot that banks fill, those dollars would otherwise have flowed into the US Treasury.

Remarkably, the CFTC initially denied the whistleblower’s request for compensation. Now you finally come across the bridge – of course to please my lucky solicitor. “Today we can see that the system is working,” they said in a statement.

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