Deutsche Asset & Wealth Management, the money management unit of Deutsche Bank, applied to the U.S. Department of Labor for permission to continue providing services to retirement plans after the bank's DB Group Services U.K. unit pleaded guilty to federal charges that it manipulated interest rates, said Michael Trupo, DOL spokesman.
The company can continue to manage retirement plan assets while waiting for approval from the Labor Department for a permanent exemption.
DB Group Services pleaded guilty to a criminal charge of wire fraud from the U.S. Department of Justice and will pay a $775 million penalty. That's part of a total of $2.5 billion Deutsche Bank on April 23 said it will pay to settle charges by U.S., U.K. and New York state authorities that it manipulated the London interbank offered rate for the U.S. dollar, yen, pound and Swiss franc, and the euro interbank offered rate interest rate benchmarks.
Deutsche Bank Asset & Wealth Management had €1.039 trillion ($1.122 trillion) in assets under management as of Dec. 31, according to DeAWM's website. As of Dec. 31, according to Pensions & Investments data, the firm managed $496 billion in worldwide institutional assets and $11.53 billion in U.S. institutional tax-exempt assets.
Renee Calabro, DeAWM spokeswoman, declined comment.