First U.S Trader Charged in Libor Rate-Rigging Probe — Update

Two former Deutsche Bank AG traders face criminal charges for allegedly trying to manipulate the Libor benchmark interest rate, including the first U.S. trader to be charged in connection with the yearslong probe.

Matthew Connolly, 51 years old, former head of the bank’s pool trading desk in New York, and Gavin Campbell Black, 46, a former derivatives trader in London, were accused of trying to rig the London interbank offered rate, an interest-rate benchmark, between 2005 and 2011 to benefit the bank’s trading positions, according to an indictment unsealed on Thursday.

Mr. Connolly, who was taken into custody on Thursday, according to the Justice Department, is the first U.S. trader to be charged in the case.

Deutsche Bank declined to comment.

A third former Deutsche Bank trader, Michael Curtler, who supervised Mr. Black, pleaded guilty in October 2015. The bank paid $2.5 billion to resolve related criminal and civil charges against it in April 2015.

Read on.

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