The news agency's sources said Germany's regulator was now probing Deutsche Bank with a 'special investigation', a process initiated by the regulator which is more severe than a routine investigation initiated by a third party.
Reuters also reports that two Deutsche Bank employees have been suspended after it used external auditors to examine whether staff were involved in manipulating interbank lending rates, German magazine Der Spiegel reported, citing no sources.
A spokesman for Deutsche Bank on Sunday declined to comment on the article, referring to its quarterly report, which said it has received subpoenas and requests for information from U.S. and European authorities in connection with setting interbank rates.
In the meantime, Bloomberg reports that Royal Bank of Canada has said it didn’t collude with other banks in setting the London interbank offered rate, distancing itself from probes on whether banks rigged benchmark rates.
'We have determined that RBC acted in accordance with the British Bankers’ Association requirement that our Libor submissions accurately reflected our perception of our cost of funds and that we did not collude with other banks', Katherine Gay, a spokeswoman for the Toronto-based bank, said today in an e-mailed statement.
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