US regulator hands a reward of almost $200 million to a former whistleblower from Deutsche Bank. The reward was against key information on the manipulation of the global benchmark. A whistleblower from Deutsche Bank rewarded
On Thursday, the Commodity Futures Trading Commission (CFTC ) awarded a reward of nearly $200 million for a whistleblower. According to Kirby McInerny LLP, a law firm, one of its clients got a reward after providing detailed documents and information in 2012. The information catalyzed the CFTC’s investigation on benchmark manipulation. Furthermore, the attorney from Kirby McInerny declined to identify the whistleblower. However, sources report that the whistleblower previously worked in the Deutsche bank. Unfortunately, spokespersons from the Deutsche Bank and CFTC decided comments.
“The whistleblower award amount may seem shocking but it’s because the ability to manipulate and make huge profits is shocking. It follows from the misconduct,” stated David Kovel. Kovel is a whistleblower attorney for Kirby McInerney. Fines against culprits
and rewards for whistleblowers
Previously, authorities across the globe have levied billions of dollars worth in fines and proceeded with criminal challenges against trades and bands. The charges were also for rigging global benchmarks. The London Interbank Offered Rate (LIBOR) was one of the most notorious culprits. Additionally, in 2015, authorities from the US and UK fined Deutsche bank with fines adding up to $2.5 billion for the rate-rigging scandal.
However, the scale of the reward has wreaked havoc for the CFTC. The US regulator is threatening to bankrupt the whistleblower program. The agency is also forcing lawmakers for authorizing emergency funds in July. So far, their largest award to a whistleblower was more than $114 million. The ‘mind-blowing’ award is the largest in the whistle program according to Erika Kelton, an attorney with Phillips and Cohen LLP.
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