Government and nonprofit organizations in New Jersey will receive a portion of a $220 million settlement from Deutsche Bank that will resolve allegations of fraudulent and anti-competitive conduct.
Jersey-based organizations affected include New Jersey’s Economic Development Authority, New Jersey State Universities Retirement Fund, New Jersey Common Pension Fund, New Jersey Carpenters Annuity Fund, New Jersey Transit MST Retirement Trust and the Hudson County Improvement Authority.
Deutsche Bank was alleged to have made improper submissions to the London Interbank Offered Rate, often abbreviated as LIBOR, an average of interest rates that estimates how much an organization would be charged for borrowing from other banks.
These submissions potentially defrauded institutions that worked with Deustche Bank with an inflated borrowing rate.
“This kind of conduct undermines public confidence in our financial institutions and the integrity of the financial markets, and that erosion of public confidence can result in damage to the entire economy,” said Attorney General Christopher S. Porrino in a prepared statement.
The investigation was conducted by an eight-state leadership group, including New Jersey. Deutsche Bank cooperated with the investigation and it is still ongoing.