A US regulator presented a record reward of nearly $ 200 million to a whistleblower who provided key information about the manipulation of global indices, sources familiar with the matter identifying the recipient as a former Deutsche Bank employee . The U.S. Commodity Futures Trading Commission (CFTC) announced the price on Thursday, without disclosing details of the whistleblower or the case. He said the price was “close to $ 200 million”.
Law firm Kirby McInerney LLP said one of its clients received the record bounty after providing extensive information and documents in 2012 that “catalyzed” CFTC and a foreign regulator’s investigations into the manipulation of benchmarks. A lawyer for Kirby McInerny declined to identify the whistleblower or the case.
Two sources told Reuters the whistleblower had previously worked for Deutsche Bank. Spokesmen for the German bank and the CFTC declined to comment. Over the past decade, authorities around the world have imposed multibillion dollar fines and pursued criminal charges against banks and traders for banding together to rig global benchmarks, including the Interbank Offered Rate. in London (LIBOR). US and UK authorities fined https://www.reuters.com/article/us-deutschebank-libor-settlement/deutsche-bank-fined-record-2-5-billion-over-rate-rigging-idUSKBN0NE12U20150423 Deutsche Bank $ 2.5 billion in 2015 on the rate-rigging scandal.
David Kovel, Kirby McInerney’s whistleblower attorney, said: “The amount of the whistleblower reward may seem shocking, but that’s because the ability to manipulate and make huge profits is shocking. It stems from the misconduct. ” The unprecedented scale of the award wreaked havoc on the CFTC, threatening to bankrupt its whistleblower program and forcing U.S. lawmakers to authorize emergency funding in July. The Wall Street Journal first reported https://www.wsj.com/articles/cftc-whistleblower-program-in-peril-over-potential-100-million-plus-payout-11620732600?mod=article_inline the problems in May, and at the time identified Kovel as the lawyer for the ex-Deutsche Bank tipster.
The biggest whistleblower award from the CFTC’s largest and best-funded counterpart that oversees securities markets, the Securities and Exchange Commission, totaled more than $ 114 million, by comparison. The amount, the highest of any government whistleblower program, was “mind-boggling,” Erika Kelton, whistleblower at Phillips & Cohen LLP, said in a statement.
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