Deutsche Bank AB’s 25% stake in Station Casinos a Las Vegas gambling operator, has been asked to be reviewed by Nevada’s gambling authorities, following the bank’s involvement in the London Interbank Offered Rate (LIBOR) scandal.
The review has been put forward by Las Vegas labour unions’ Culinary Workers Union Local 226 and Bartenders Union Local 165, who have questioned the suitability of the banks stake in the casino enterprise, following its $2.5 billion fine relating to LIBOR rigging by UK and US financial authorities.
Senior representatives of the Unions which represent over 50,000 casino employees have written to the Nevada Gambling Commission and the state Gaming Control asking for the bank to be subjected to hearings on its ownership
Station Casinos currently operates 21 properties in Las Vegas, the gambling operator has $2.15 billion in debt. The Frankfurt bank acquired its 25% stake in the company following its 2009 bankruptcy placement.
Deutsche Bank’s LIBOR charge relates to the manipulating of interest rates in order to profit from trades. In April 2015 the bank confirmed that it had settled its LIBOR charge with the US Department of Justice, US Trading Commission and the UK Financial Conduct Authority for a record charge/fine of $2.5 billion