Benjamin Lawsky, the New York regulator known for taking a hard line against overseas banks, has shouldered his way into the long-running Libor scandal, investigating Deutsche Bank for alleged manipulation of the benchmark borrowing rate, according to people familiar with the matter.
The probe by New York’s Department of Financial Services adds to a litany of US regulatory problems for Germany’s largest lender.
It is the first Libor investigation by the DFS, which has become known under Mr Lawsky’s leadership for taking a tough approach to allegations of banks’ wrongdoing. The department has previously ratcheted up the cost of settling allegations of misconduct.
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