Deutsche Bank says Libor could result in heavy financial penalty

FRANKFURT (Reuters) - Deutsche Bank said that probes by regulators into a possible manipulation of the Libor benchmark interest rate could result in harsh fines.

"The investigations underway have the potential to result in the imposition of significant financial penalties and other consequences for the Bank," Germany's flagship lender said in its third quarter report published on Tuesday.

Deutsche is cooperating with investigators and has also conducted an internal inquiry, led by its legal department, which resulted in the suspension of five Frankfurt-based traders in February.

(Reporting by Arno Schuetze; Editing by David Cowell)