Jain, who quit as co-ceo of Deutsche Bank with effect from June 30, was earlier accused of having 'knowingly made inaccurate statements' to Germany's central bank, Deutsche Bundesbank, thus misleading regulators on what he knew about the alleged manipulation of inter-bank rates such as Libor.

As per reports, the Federal Financial Supervisory Authority (BaFin) had criticised Deutsche Bank and Jain in its report on investigations into the rate fixing scandal. Bafin and Deutsche Bundesbank together share the supervision of banking business in the country.

A report in business daily, however, said today that BaFin has dropped 'a key strand of its investigation' and has cleared Jain of allegedly lying to the central bank about what he knew about the rate manipulation. On its part, Deutsche Bank said, "We continue to work with our regulator to bring this inquiry to a conclusion."

"The suspicion that you made knowingly incorrect statements to a regulator seems unsubstantiated to me... This aspect will therefore no longer be relevant in the continued assessment by BaFin," Hufeld wrote in his letter to Jain. The BaFin president, however, added that all other allegations against Jain and Deutsche Bank were still being evaluated by the regulator.

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