National Business News

Treasury settles with Deutsche Bank over bond price fixing

The Associated Press
Posted: Sep. 12, 2019 7:00 am Updated: Sep. 12, 2019 9:44 am

HARRISBURG, Pa. (AP) The Pennsylvania Treasury Department says an agreement been reached with Deutsche Bank to settle its part of a lawsuit over allegations of price fixing in government bond deals, and the bank has agreed to pay $15 million.

Treasurer Joe Torsella announced Thursday the deal submitted to a federal judge for approval also includes a commitment to train employees, oversee and audit workers' communications and improve ethical and legal compliance processes.

The lawsuit is still pending against 15 other financial institutions that underwrite Fannie Mae and Freddie Mac bonds.

Torsella's office and its fellow plaintiffs claim the institutions violated federal antitrust laws by conspiring to increase prices in bond transactions from 2009 through 2015.

Deutsche Bank spokesman Troy Gravitt says the company is pleased to have resolved the matter.