Deutsche Bank fined $2.5 billion for role in rigging LIBOR

New York state financial regulators say Deutsche Bank will pay a $2.5 billion settlement involving the manipulation of the benchmark interest rates.

Financial Services Superintendent Benjamin Lawsky announced Thursday morning that Deutsche will fire employees who were involved in the misconduct and install an independent monitor for New York state banking law violations.

Lawsky says the penalty includes $600 million for the state, $800 million to the Commodities Futures Trading Commission, $775 million to the U.S. Department of Justice, and about $340 million to the United Kingdom's Financial Conduct Authority.

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.

A number of banks in the U.S., Canada and Europe have been targeted in a probe by regulators around the globe looking into activities in rigging the LIBOR rate to a level more beneficial to the banks involved.