CHARLESTON — West Virginia Attorney General Patrick Morrisey's office has announced a $220 million settlement with Deutsche Bank for fraudulent conduct involving the manipulation of LIBOR, a benchmark interest rate that affects investments and has a widespread impact on global markets and consumers.
West Virginia does not yet know how much, if any, it will receive from the settlement.
The bank’s conduct defrauded government entities and not-for-profit organizations of millions of dollars. Across the nation these groups entered into investments with Deutsche Bank without knowledge of the bank’s unlawful actions.
“When a bank acts to fraudulently manipulate markets and rates, it affects West Virginia and the nation,” Morrisey said. “The rule of law will prevail and hold such companies accountable for their actions.”
The investigation, conducted by a working group of 45 state attorneys general, revealed that Deutsche Bank helped to manipulate the benchmark interest rate with inaccurate data and improper communications, all in an attempt to benefit Deutsche Bank's trading position.
The states believe these actions misrepresented borrowing rates and the actual borrowing costs of Deutsche Bank.
Governmental and not-for-profit entities with LIBOR-linked swaps and other investment contracts with Deutsche Bank will be notified if they are eligible to receive a distribution from the settlement.
West Virginia joined the settlement with Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, Wisconsin and Wyoming.