Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

Deutsche Bank: Here are $2 billion-plus ways we're sorry about Libor

Juergen Fitschen (L), co-CEO of Deutsche Bank AG, and Anshu Jain, co-CEO of Deutsche Bank AG.
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Deutsche Bank is committing about $2.3 billion to prove it's sorry that some of its employees rigged interest rates.

The German bank announced today it would pay about $983 million (725 million euros) as part of an agreement with the European Commission to resolve investigations into the submission of interbank offered rates for both the euro and yen.

Deutsche Bank also said it was investing about $1.35 billion (1 billion euros) to "elevate its systems and controls to best in class," according to an internal memo sent to employees today.

"Consistent with our ongoing review, the commission's investigation found evidence of past misconduct on the part of a small number of individuals who acted in breach of our values and beliefs," Jürgen Fitschen and Anshu Jain, co-CEOs of Deutsche Bank, wrote. "This misconduct disappoints us profoundly."

ECB shouldn't use negative rates: DB CEO

Five other firms were fined for manipulating the cost of lending between banks. Total fines of $2.3 billion will be collected from Royal Bank of Scotland, Citigroup, Societe Generale, JPMorgan Chase and RP Martin.

(Read more: Banks hit with $2.3 billion rate-rigging fine)

Deutsche said it was increasing the number of employees tasked with internal controls and had created an independent unit to watch benchmark rate submissions.

"Integrity is at the center of our values and beliefs. Every one of us has the responsibility to live by these values, and specifically to practice the highest standards of integrity in everything we say and do," the memo said. "This case illustrates the paramount importance of our values to the success of our strategy."

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Deutsche Bank had already set aside money for the fund.

"The settlement amount is already substantially reflected in the bank's existing litigation reserves and no material additional reserves will be taken for this settlement," the bank said in a public statement Tuesday.

—By CNBC's Lawrence Delevingne. Follow him on Twitter @ldelevingne.