Prosecutors Raid Deutsche Bank
German prosecutors launch inquiry into Deutsche Bank over Libor riggingReuters

German prosecutors have launched preliminary investigations into Deutsche Bank over its role in the Libor rigging scandal, after financial watchdog BaFin earlier alleged in a report that the bank's executives acted "negligently" over the issue.

The Financial Times reported that prosecutors are examining the role played by individuals connected with Deutsche Bank's involvement in the scandal, adding that the probe could open up a new front in the affair.

"I can confirm that a corresponding preliminary investigation is pending here. Those suspected are all represented by lawyers and are also aware of the process. How things proceed depends on the evaluation of the BaFin report, which has only recently been received," Nadja Niesen, senior prosecutor, was quoted as saying by the newspaper.

FT, citing a report on Libor-manipulation by BaFin, said that the bank's outgoing co-CEO Anshu Jain may have "knowingly made inaccurate statements" to Germany's Bundesbank during a 2012 interview about the benchmark-setting process.

Jain, who stepped down as joint chief executive earlier in June, allegedly told the central bank he had no knowledge of rumours of possible rigging in 2008. Nevertheless, the report says that contemporaneous emails about a meeting on the subject were forwarded to him at the time.

Deutsche Bank paid the largest fine of $2.5bn (£1.6bn, €2.2bn) in April to authorities in the US and UK to settle claims that it rigged Libor, the benchmark interest rate that underpins about $350tn of debt across the globe.

The scandal, also involving a number of other major banks, shocked the financial world. Banks have so far paid $9bn in total fines in connection with the rigging scandal.