U.S. DOJ investigates ex-Deutsche Bank traders over Libor -Bloomberg

July 10 (Reuters) - U.S. Department of Justice prosecutors are investigating former Deutsche Bank AG (Xetra: 514000 - news) traders in connection with their participation in the interest rate-rigging scandal and could bring charges this year, Bloomberg reported, citing two people with knowledge of the situation.

At least five former traders are under investigation for their role in rigging the U.S. dollar version of the interest-rate benchmark, Bloomberg said. (http://bloom.bg/1GbJRIZ)

These would be the first charges against Deutsche Bank traders in connection with the London interbank offered rate, or Libor, Bloomberg said.

Reuters could not confirm the report. Spokesmen from the Justice Department and Deutsche Bank declined to comment.

Deutsche Bank has struggled to restore an image tarnished by a raft of regulatory and legal problems that also include probes into alleged mis-selling of derivatives, tax evasion and money laundering.

The German bank agreed in April to pay $2.5 billion to U.S. and British authorities for manipulation of Libor.

The German lender presented a management shake-up on May 21 in an attempt to restore confidence, but some investors demanded more changes.

In June, a source told Reuters that Germany's financial watchdog Bafin criticized Deutsche Bank in its report investigating attempts to manipulate inter-bank interest rates such as Libor. (Reporting by Aurindom Mukherjee in Bengaluru; Editing by Lisa Von Ahn)