Deutsche Bank, Former Traders Settle Dispute Over Suspensions
A German state labor court said Wednesday that Deutsche Bank AG and four former money-market traders agreed to a settlement in their legal dispute over the traders’ suspension in early 2013.
The parties agreed not to disclose the details of the settlement, said the presiding judge of the Hesse state labor court, Juergen Mandelke. As a result of the settlement, a public hearing in the dispute that had been scheduled for Friday has been canceled, the court said.
“Having entered the mediation proceedings at the suggestion of the court of appeals, we have now followed the moderation judge’s recommendation to settle our appeal,” Deutsche Bank said.
Deutsche Bank suspended the traders in February 2013, alleging improper internal communication about lending rates between banks, such as the London interbank offered rate, or Libor. In summer 2013, the traders appealed their suspensions.
In September 2013, a lower Frankfurt labor court forced Deutsche Bank to reinstate the traders to their original positions. The court ruled that the suspensions weren’t justified because the bank didn’t have proper internal rules and controls in place, and it didn’t ensure adequate separation of rate submitting and derivatives trading.
The bank appealed that verdict. Because the bank didn’t reinstate the traders to their original positions, as ordered by the Frankfurt court, it was fined more than €100,000. people familiar with the matter have said. The bank at the time declined to comment on the fine.
Source: WSJ- Deutsche Bank, Former Traders Settle Dispute Over Suspensions
