Deutsche Bank Shares Slide As Bafin Discloses Liebor Probe Of Biggest German Bank

Tyler Durden's picture


And the hits just keep on coming. Just as we said when it first broke, the Lieborgate scandal has considerably more play here and the latest and greatest is, via Bloomberg:

  • Germany’s Bafin Holding Libor Inquiry on Deutsche Bank: Reuters

The Deutsche Bank ADR has plunged by around 5% so far. Following 'news' this morning that RBC didn't 'collude' but no denial of the actual submission 'efforts' it would not surprise us to see the entire spectrum of LIBOR submitters 'probed'.

From Reuters:

German markets regulator BaFin is conducting a special probe of Deutsche Bank (DBKGn.DE) as part of a wider investigation into possible manipulation of the London Inter Bank Offered Rate (Libor), two people familiar with the matter said on Friday.


The German regulator declined to comment specifically on whether it was probing Deutsche Bank, but said it was in looking into suspected manipulation of Libor rates by banks.


"We are making use of our entire spectrum of regulatory instruments, so far as this is necessary," a spokesman said.


Deutsche Bank shares extended losses after the news and traded 4.3 percent lower at 1523 GMT.


Results from the probe are expected to emerge in mid July, one of the sources said.


They said the investigation was a so-called special probe initiated by the regulator, which is more severe than routine probes which are initiated by a third party, for example a bank.


Deutsche Bank declined to comment but referred to its quarterly report which said the bank has received various subpoenas and requests for information from certain regulators and governmental entities in the United States and Europe, in connection with setting interbank offered rates for various currencies.


These inquiries relate to various periods between 2005 and 2011. At the time, Deutsche Bank said it is cooperating with these investigations.

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Fri, 07/06/2012 - 11:44 | 2592091 williambanzai7
williambanzai7's picture

Ach du libor!

Fri, 07/06/2012 - 11:59 | 2592152 DoChenRollingBearing
DoChenRollingBearing's picture

@ nope

At this point who knows how deep this rabbit hole goes...  And now Deutsche Bank.  Whichever way it goes, however, we are talking about big money.  The criminality grows.

Our money!

Fri, 07/06/2012 - 12:03 | 2592171 walküre
walküre's picture

just more affirmation for the ongoing BANK RUN

That Russian whorehouse Sberbank is being raided as we speak. Hence no digital outflows. Makes sense.

Fri, 07/06/2012 - 12:10 | 2592185 DoChenRollingBearing
DoChenRollingBearing's picture

$500 leaves my bank account via ATM every time I remember to stop by driving home from work...

Fri, 07/06/2012 - 12:22 | 2592241 Jay Gould Esq.
Jay Gould Esq.'s picture

As an aside, your blog is informational and well-written. Recommended.

Fri, 07/06/2012 - 12:26 | 2592258 fuu
fuu's picture

He steals Barron's articles...

Fri, 07/06/2012 - 13:22 | 2592472 DoChenRollingBearing
DoChenRollingBearing's picture

No, I attribute everything to the authors.  I review Barron's, some people may want to save the $5.00.  I don't steal anything from Barron's.

Fri, 07/06/2012 - 13:32 | 2592519 fuu
fuu's picture

I was just messing with you. Keep up the good work DCRB.

Fri, 07/06/2012 - 13:25 | 2592484 DoChenRollingBearing
DoChenRollingBearing's picture

Thank you Jay Gould for the kind words.  


"Bloggers depend on the kindness of strangers to read their stuff."

-- DoChenRollingBearing

Fri, 07/06/2012 - 12:11 | 2592186 john39
john39's picture

>>>An interesting take on the Libor scandal

I agree with this post... were are witnesses another episode of problem reaction solution, which has been used against the world so many times.  but obviously, people are catching on to it.

Fri, 07/06/2012 - 12:30 | 2592236 francis_sawyer
francis_sawyer's picture

So in this case, I take it that the Burj Khalifa is just the latest penis of Osiris?...

Fri, 07/06/2012 - 11:57 | 2592139 MillionDollarBonus_
MillionDollarBonus_'s picture

I find all this hysteria about libor "manipulation" quite amusing. Libor is set by some of the smartest  people in the world at a few selected top tier investment banks. I would like to see these Zerohedgers actually confront these successful traders in real life. These guys are at the top of their game, and would literally laugh in the faces of spotty Zerohedge computer nerds and pathetic greasy day traders trading a single s&p mini contract.

Fri, 07/06/2012 - 11:58 | 2592147 tocointhephrase
tocointhephrase's picture

Most (all bar you) will fail to see your point????

Fri, 07/06/2012 - 12:00 | 2592159 GoldSilverDoc
GoldSilverDoc's picture

Spoken like a true parasite.

Fri, 07/06/2012 - 12:08 | 2592179 sickofthepunx
sickofthepunx's picture

buncha goddamned chicken littles crying about the end of the world every time a central banker farts

Fri, 07/06/2012 - 12:10 | 2592184 Ookspay
Ookspay's picture

"Smartest people in the world"?

Yeah right, greenspan, bernanke, trichet and draghi have done a fantastic job, no really!

Fri, 07/06/2012 - 12:13 | 2592197 ArkansasAngie
ArkansasAngie's picture

And you got that from reading their emails and high fiving?

While I have found that dumb people don't know they're dumb ... I've also found that sociopaths don't know the definition of hubris.

I hope they get along better with their prison mates than they do with the rest of the world!


Fri, 07/06/2012 - 12:18 | 2592223 kurt
kurt's picture


Fri, 07/06/2012 - 12:52 | 2592354 Shigure
Shigure's picture

I would like to see Zerohedgers confront these "successful" traders in real life too :)

Fri, 07/06/2012 - 13:10 | 2592430 Wannabee
Wannabee's picture

In an earlier post I implied you may be losing your mojo. Reading your post today I see you have it back and then some. Nice recovery.

Fri, 07/06/2012 - 11:45 | 2592095 francis_sawyer
francis_sawyer's picture

Hey look! I found my gerbil!

Fri, 07/06/2012 - 11:59 | 2592155 pods
pods's picture

So that was the "special probe initiated by the regulator?"


Fri, 07/06/2012 - 12:01 | 2592162 francis_sawyer
francis_sawyer's picture

oddly enough, the gerbil looked just like MDB... Amazing!

Fri, 07/06/2012 - 11:45 | 2592096 Ookspay
Ookspay's picture

Ru Roh! Margin Stanley gonna get pummeled, again.

AU Bitchez!

Fri, 07/06/2012 - 11:46 | 2592098 Stuart
Stuart's picture

Gawd, could it be?  These corrupt banking execs just might actually be arrogant enough, stupid enough not to see that they are going to eventually be tossed to the mob as sacraficial fodder by politicians hoping to save their own sorry asses.  Politicians will seek out a scapegoat, they always do.  

Fri, 07/06/2012 - 11:51 | 2592118 SheepDog-One
SheepDog-One's picture

YEP the banksters dont realize theyre bulletproof only until they get thrown under the bus!

Fri, 07/06/2012 - 12:17 | 2592221 ArkansasAngie
ArkansasAngie's picture

Flak jackets don't help much when you're being trampled in a mob

Fri, 07/06/2012 - 11:45 | 2592104 Undecided
Undecided's picture


Shit getting a little heated, this Bitch better STFU before everyone pays...

Fri, 07/06/2012 - 12:44 | 2592325 pods
pods's picture

I had the misfortune of hearing that shrill voice on my way into work.  Cannot imagine how bad Bill feels, I want to kill myself whenever I hear that bitch.

I just cannot take anymore propaganda from the place.  

Why is it every country we are about to kinetically liberate has a "regime?"

And exactly why is it we feel the need to liberate so many innocents from this life?

I shudder to see how non-USSA textbooks describe our nation 100 years from now.

Of course, if we keep this up, the descriptions might be carved into some adobe tablets..............


Fri, 07/06/2012 - 13:10 | 2592431 Hype Alert
Hype Alert's picture

Textbooks?  You're kidding, right?  They'll say whatever they want them to say.  What's in the books today isn't the same thing I was taught in school.  The checks and balances put in place to prevent the growth of gov't we have today AND the reasons why.  Who controls the content?

On another note, have we all forgotten the UN is currently working on an Arms Trade Treaty?  Not hearing much about that are we.

Fri, 07/06/2012 - 13:28 | 2592498 pods
pods's picture

That is why I said non USSA textbooks, and 100 years from now.  The power structure will have certainly been passed on.  Hopefully.

I have not looked at recent textbooks, but have only been out of school 20 or so years.

To be honest, I cannot remember anything in them at that time which really informed me of anything as I have come to know events now.

I would say that most textbooks have been shaped for the majority of the 20th century.


Fri, 07/06/2012 - 11:48 | 2592109 Mister Ponzi
Mister Ponzi's picture

Unsurprising those regulators outside the US start an investigation. However, given the level of incompetence at BaFin, well known even outside Germany's borders, I am not sure what will come out of this.

Fri, 07/06/2012 - 11:52 | 2592122 magpie
magpie's picture

...Wilkommen in der Bailout-Zone ?

Fri, 07/06/2012 - 11:50 | 2592115 caimen garou
caimen garou's picture

Ok all you banks bend over and assume the position for a probe, let me introduce you to Dr.Longfingers....

Fri, 07/06/2012 - 11:52 | 2592117 Vincent Vega
Vincent Vega's picture

As Tyler would say: Presented without comment.

Fri, 07/06/2012 - 11:52 | 2592125 monopoly
monopoly's picture

And they sell gold. Beyond words. The mighty dollar???? Just wait it out all. 

Fri, 07/06/2012 - 11:58 | 2592153 EL INDIO
EL INDIO's picture

Just like a dying star it collapses on itself then explodes


(or something like that)

Fri, 07/06/2012 - 11:57 | 2592143 EL INDIO
EL INDIO's picture

Chain reaction bitchez


The fucking dominos are falling.


It would be surprising if the system survives the heat of this summer.


Fucking meltdown or melt-through or whatever bitchez.

Fri, 07/06/2012 - 11:58 | 2592148 Boilermaker
Boilermaker's picture

So, in other words, we are truly at the end game moment.  In a complete and utter cover-your-ass before the pitchforks arrive display of cowardice.

Fri, 07/06/2012 - 12:01 | 2592164 monopoly
monopoly's picture

Disagree. We have an election, and they will buy some glue, a few rubber bands and some frayed string to hold it together till after the election. The DOW is near 13,000. Can't scream just yet. Sheeples look at the market and say "What me Worry". After November, then we can talk. But at some point, yes, it will all implode.

Fri, 07/06/2012 - 12:07 | 2592175 francis_sawyer
francis_sawyer's picture

I can't disagree with that... The only EDIT I'd make is to what you actually define 'an election' (which makes little difference but style points)...

Fri, 07/06/2012 - 12:42 | 2592319 vote_libertaria...
vote_libertarian_party's picture

Just like 2008


'They' will keep stocks afloat until after the election.

Fri, 07/06/2012 - 12:03 | 2592167 fuu
fuu's picture


Fri, 07/06/2012 - 12:08 | 2592181 hugovanderbubble
hugovanderbubble's picture

I have great friends in C...but they gonna be the next...with RBS 

Fri, 07/06/2012 - 12:47 | 2592338 AurorusBorealus
AurorusBorealus's picture

Citigroup is an American bank.  The Americans will do nothing, until one day, their entire wealth is wiped out.  Then, they will stand around in stunned disbelief for about a day, then all hell will break loose.  Best to be out of the country... soon.

Fri, 07/06/2012 - 12:22 | 2592243 Grey-Ghost
Grey-Ghost's picture

Since when a meager 5% is a "plunge"?

Fri, 07/06/2012 - 13:23 | 2592473 EL INDIO
EL INDIO's picture

With a 20X leverage 5% becomes 100% !

Fri, 07/06/2012 - 12:30 | 2592276 Catullus
Catullus's picture

Just don't lie to the regulator. "yeah, we don't give a shit what we report. It doesn't matter, it's averaged in to the overall rate,"

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