German Savings Banks Head Demands: No Deferred Prosecutions Agreements, Libor Manipulation Is a Crime!
February 26, 2013 • 11:30AM

In an interview with the German Press Agency, DPA, yesterday, Georg Fahrenschon, the president of the German savings banks association, warned against attempts by the EU Commission to grant deferred prosecution agreements to banks if they agree to pay voluntary fines for their involvement in Libor manipulations. "The EU is sending out wrong signals if it ends this issue with an indulgence deal," Fahrenschon said, "What we have here, instead, are charges of criminal conduct."

Manipulations like those in the Libor case by a handful of major private banks have done enormous damage and caused a loss of confidence in the financial sector at the expense of many thousands of contract partners, Fahrenschon charged. "This is not a minor affair," he said, adding that improved Libor rating procedures in the future have to be introduced anyway, "they cannot be traded as a concession with the implicated banks." Fahrenschon did not name specific banks, but everybody knows that Deutsche Bank is among those that are being investigated for Libor manipulations.