Deutsche Bank AG and JPMorgan Chase & Co. agreed to pay a combined $148 million to resolve claims that they conspired to manipulate the benchmark yen Libor rate and said they will cooperate with investors suing other banks.
Investors including Sonterra Capital Master Fund, Hayman Capital Management LP and the California State Teachers’ Retirement System sued 21 banks and three brokerage firms in federal court in New York in July 2015, accusing them of manipulating the rate from 2006 to 2011.
Deutsche Bank will pay $77 million and JPMorgan will pay $71 million under the settlements, which were outlined in court documents filed late Friday. Neither company admitted wrongdoing under the agreements, which must still be approved by a judge.
The world’s largest banks have paid billions of dollars in fines over the last five years to settle allegations of rigging the London interbank offered rate, a key financial benchmark used to set interest rates. Class-action lawsuits filed by investors and regulators are still making their way through the courts.
Citigroup Inc. agreed to pay $23 million to resolve the claims in February 2016 and said it would cooperate with the plaintiffs, in what the parties called an “icebreaker” intended to spur the others to settle. One of the brokerages, London-based RP Martin Holdings Ltd., also agreed to provide evidence to the investors as part of the settlement. HSBC Holdings Plc later settled for $35 million and its cooperation.
The case is Sonterra Capital Master Fund Ltd. v. UBS AG, 15-cv-05844, U.S. District Court, Southern District of New York (Manhattan).