Former Deutsche Bank trader and managing director Andreas Hauschild has been acquitted of conspiracy to defraud at London’s Southwark Crown Court over the rigging of the Euro Interbank Offered Rate (Euribor) after being found not guilty of manipulating the benchmark rate during global financial crisis. The case was brought by the UK”s Serious Fraud Office […]
Just days after former colleagues Carlo Palombo was convicted of similar charges, a UK jury has found a second former Barclays interest rate trader guilty of Euribor manipulation.
Former managing director at Barclays, Colin Bermingham, has been convicted of manipulating the benchmark rate at the height of the financial crisis following an investigation and prosecution brought by the UK’s Serious Fraud Office (SFO).
A third trader, manager of the liquidity management portfolio at Barclays, Sisse Bohart, was acquitted last week.
A jury at a London court has found former Barclays interest rate trader Carlo Palombo, guilty of manipulating the Euribor benchmark interbank lending rate, however it found a fellow former Barclays trader not guilty and is still considering its verdict in a third related case.
The UK’s Serious Fraud Office (SFO) brought the case, alleging that Palombo, Sisse Bohart, who was acquitted, and Colin Bermingham, who is awaiting a verdict, colluded with former Deutsche Bank counterparts Christian Bittar and Phillipe Moryoussef to fix the benchmark rate set. The methodology alleged by the SFO was very familiar to anyone following these cases – the dealers allegedly pressured fellow workers who were charged with submitting the bank’s reference rate, to alter to suit the accused’s books.
Bittar and Moryoussef were convicted last year on the same charges, the latter was given an eight-year jail sentence, which Bittar, who pleaded guilty, was sentenced to five years’ imprisonment.
The Commodity Futures Trading Commission (CFTC) has fined Societe Generale (SocGen) $475 million, and the US Department of Justice (DOJ) another $275 million, for attempted manipulation of and false reporting in connection with the London Interbank Offered Rate (LIBOR) and Euro Interbank Offered Rate (Euribor).
More specifically, the CFTC accused the French bank of attempted manipulation of and false reporting in connection with the LIBOR for US Dollar, Yen and Euro, and the Euribor, certain instances of manipulation of Yen LIBOR, and aiding and abetting traders at another bank in their attempts to manipulate Euribor.
This misconduct apparently spanned more than six years, from 2006 through mid-2012.
Nex Group says that the United States District Court in the Southern District of New York has dismissed two entities which formed part of the Icap Group (Icap plc and Icap Europe Limited) from a class action case brought by various investors who alleged manipulation of the Euro Interbank Offered Rate, Euribor.
The liability for for the two entities resided with Nex Group under the terms of the recently completed transaction with Tullett Prebon that saw Icap’s voice and information services business merged with that firm.
Implementation of a reformed Euro Interbank Offered Rate (Euribor) is expected to happen in the first half of 2017, according to the Financial Stability Board (FSB). The FSB – which groups G20 financial authorities – has published an update on the process of reforming major interest rate benchmarks at international level on the back of […]