Apr 1, 2019

Former Barclays traders jailed over Euribor rate-rigging

AFP Two traders have been jailed after being convicted of conspiring to rig the Euribor global interest rate. Every day, one trader at each bank would estimate the interest rate he or she thought the bank would have to pay to borrow cash from other banks, based on the rates banks were paying that morning. During the sentencing hearing, Judge Michael Gledhill echoed controversial remarks by Mr Justice Cooke, who presided over the first interest rate rigging trial in 2015 of former UBS trader Tom Hayes, saying he wanted "a message sent out to the world of banking". In 2017, at the trial of Barclays traders for rigging rates, John Ewan, the former Libor manager at the British Bankers Association, agreed requests for higher or lower submissions within a range could be acceptable. The trial of Palombo and Bermingham heard similar evidence from Helmut Konrad, a retired banker who helped set up Euribor in 1999, who told the court in 2018 it was "Okay" for banks to submit a rate from a number of options that were equally good, even if one rate would be more profitable for the bank.

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