Deutsche Bank will pay U.S. and British authorities $2.5 billion for interest rate manipulation, New York regulators said on Thursday.
As part of the deal, Germany’s largest bank also will terminate and ban employees who engaged in misconduct and will install an independent monitor, according to the statement by the New York State Department of Financial Services.
The penalty includes $600 million to the New York State Department of Financial Services, $800 million to the Commodities Futures Trading Commission, $775 million to the U.S. Department of Justice, and 227 million GBP (approximately $340 million) to the U.K.'s Financial Conduct Authority.
Financial Services Superintendent Benjamin Lawsky says the violations were committed from 2005 through 2009 by Deutsche Bank traders. The manipulations included the London Interbank Offered Rate, a benchmark interest rate used in financial markets around the world.
-- CNBC and The Associated Press contributed to this report.