The Duetsche Bank will be paying Iowa’s largest pension fund more than $112,000 and will make payments to affected Iowa non-profit organizations as part of a $220 million settlement. Iowa Attorney General, Tom Miller, made the announcement Wednesday, saying the 45-state settlement is for the Duetsche Bank’s fraudulent manipulation of the benchmark interest rate charged for short-term loans. The benchmark, called the London InterBank Offered Rate, or LIBOR, affects financial instruments worth trillions of dollars and has a widespread global impact on markets and consumers. The multi-state suit alleges Duetsche Bank defrauded government entities and not-for-profit organizations across the country and entered into swap agreements with other investment instruments, manipulating LIBOR rates. The Iowa Public Employee’s Retirement System (IPERS) will receive a $112,805 payment through the settlement. All other entities will be notified if they are eligible to receive a distribution from the $213.35 million settlement fund.
