Deutsche Bank’s London subsidiary has agreed to pay a total of $2.5bn to four regulators in the US and UK as part of a settlement over claims that traders at the German bank manipulated interest rate benchmarks such as the London Interbank Offered Rate (LIBOR).
Some £227m has been paid to the Financial Conduct Authority, which was among the regulators that ordered Deutsche Bank to fire seven employees.
The prime minister said the Treasury could raise £200m under the proposed new Libor legislation. This money would be used to create a three-year apprenticeship programme.
In a speech in London, Cameron suggested Deutsche Band was “a part of Labour’s failed past” and that the government “is taking money off a bank that tried to rig the market”.
Cameron explained the policy is part of his party’s plan to “abolish” long-term youth unemployment.
He has already committed to the next Conservative government abolishing Job Seeker’s Allowance for 18-21 year olds and replacing it with a Youth Allowance, time-limited to six months.
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This follows on from his previous pledges of helping 600,000 companies a year set up by 2020 and creating a further three million apprenticeships in the next parliament.
The latest proposed apprenticeship scheme will target Brits aged between 22 and 24 who have been unemployed for more than six months and is expected to “train people and get them off the dole and in to work,” according to Cameron.
“We’re going to take the fines and use it to train young people and get them off the dole and into work,” the prime minister said. “This is about taking money off those who represent Labour’s failed past; and giving to those who through their hard work and endeavour can represent a brighter Conservative future.”
He warned that anyone jobless refusing an apprenticeship offer would be required to do community work.
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