Tag Archives: Barclays

Barclays : Ex-Lehman trader loses bid for $83 million ‘windfall’ bonus – judge

A federal judge on Wednesday said a former star Lehman Brothers Holdings Inc trader was not entitled to an $83 million (£64.4 million) bonus he claimed he was owed following the investment bank’s 2008 collapse, on top of a similar sum that Barclays Plc already paid him.

U.S. District Judge Lorna Schofield in Manhattan also said the former trader Jonathan Hoffman did not deserve $7.7 million that a federal bankruptcy judge had said he could recoup from the estate of Lehman’s brokerage unit, Lehman Brothers Inc, based on an unpaid instalment from his 2007 bonus.

Hoffman’s quest for additional pay is one of the largest lawsuits left in the wind-down of Lehman, whose Sept. 15, 2008 bankruptcy remains the biggest in U.S. history and helped trigger a global financial crisis.

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Libor Fixing: Ex-Barclays Traders Found Guilty

Three former Barclays traders have been found guilty of conspiring to fraudulently manipulate global benchmark interest rates.

Jay Merchant, 45, a trader and the most senior of the men on trial, was convicted unanimously at Southwark Crown Court.

Former Libor submitter Jonathan Mathew, 35, and former trader Alex Pabon, a 38-year-old American, were found guilty by a majority verdict after the 10-week trial.

The Serious Fraud Office (SFO) claimed the men were dishonest when they submitted or asked colleagues to submit Libor rates that would benefit trading positions and prejudice the economic interests of others.

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Bankers, Not Banks, on Trial in Barclays Libor Case, SFO Says

A London prosecutor told jurors they didn’t have to decide whether the banking industry as a whole is guilty of fraud, but just the five former Barclays Plc traders accused of manipulating Libor.

James Hines, a prosecutor for the Serious Fraud Office, made the argument Wednesday as he asked the jurors to disregard testimony by the five bankers that manipulation of benchmarks was an everyday occurrence, not only in the bank but also across the City of London.

“The banking industry isn’t on trial, it is a handful of dishonest traders,” Hines said on the second day of his closing argument.

Alex Pabon, Stylianos Contogoulas, Jay Merchant, Jonathan Mathew and Ryan Reich are on trial for conspiring to fix the London interbank offered rate, a benchmark tied to trillions of dollars in securities and loans, between 2005 and 2007. They face as long as 10 years in prison if convicted.

Merchant, in particular, said the culture of making the requests was fostered by senior managers at the bank despite there being no e-mail or documentary evidence they instructed traders to act dishonestly, Hines said.

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Barclays Director Arrested For Giving Plumber Trading Tips in Exchange for Home Renovations

Bloomberg reports:

A former Barclays Plc director was accused by the U.S. of giving tips about future mergers and acquisitions to a plumber friend in exchange for cash and home renovations.

 

Steven McClatchey, 58, who worked in the investment-banking division, told the plumber about 11 impending mergers and acquisitions from March 2014 to August 2015, the government said. The plumber wasn’t named.

 

McClatchey and the plumber met in 2011 or 2012 at the Long Island marina where both dock their boats, according to the complaint. By 2013, they spent most Saturdays at the marina or, in cold weather, playing pool and watching sports in McClatchey’s garage. The plumber used tips from McClatchey to make $76,000 trading stocks including Questor Pharmaceuticals Inc., PetSmart Inc., Emulex Corp. and Omnicare Inc., the government said.

The WSJ adds:

Steven McClatchey, 58, was a former employee at Barclays, the bank confirmed. Prosecutors said he worked for seven years at the Manhattan office of Barclays, where he was responsible for tracking the bank’s involvement in potential mergers and acquisitions. He distributed a weekly document to select Barclays employees called “M&A Global Weekly Business Update,” which included deals that were likely to become public the following week.

 

Government officials allege Mr. McClatchey gave tips to his friend who worked as a plumber ahead of more than 10 separate mergers and acquisitions before they became public, including deals involving PetSmart Inc., CVS Health Corp. and Duke Energy Corp.

 

The plumber allegedly paid Mr. McClatchey, in part, by providing “home renovation” services free of charge.

* * *

The two men became friends about four years ago, when they met at the Long Island marina where they both docked their boats. They began to spend most Saturdays together, the complaint said. The first tip Mr. McClatchey gave Mr. Pusey came around 2013 or 2014, when Mr. McClatchey allegedly told the plumber to “keep an eye on a particular company because something good was going to happen,” according to the complaint. Based on the tips, Mr. Pusey bought securities in at least 11 companies, prosecutors said.

Ex-Barclays Trader Disrupts Libor Testimony Shouting ‘No

A former Barclays Plc trader on trial for rigging Libor was admonished by the judge for an outburst that interrupted a co-defendant being questioned by a prosecutor.

Ryan Reich shouted “no, no, no, no,” from his seat on Friday after the prosecutor asked fellow ex-Barclays trader Alex Pabon on the stand if the Libor rate affected swaps valuations. After the interruption, Reich’s lawyer told him to be quiet and Judge Anthony Leonard said “interruptions should not take place.” Pabon answered that, yes, Libor did affect swaps valuations.

Reich and Pabon are on trial with former colleagues Stylianos Contogoulas, Jay Merchant and Jonathan Mathew for conspiring from 2005 through 2007 to fix the London interbank offered rate, or Libor, a benchmark tied to trillions of dollars in securities and loans. Another ex-trader, Peter Johnson, has pleaded guilty to the charge.

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Ex-Barclays trader tells court Libor rate promise was ‘just banter’

A former Barclays trader accused of conspiring to rig a global interest rate said a promise to name a colleague in a book and to invite him to his bar in return for help in setting Libor was “just banter”.

Greek-born Stylianos Contogoulas told Southwark Crown Court on Wednesday that he had been instructed by his boss within days of joining the Barclays dollar desk in 2005 to tell a senior colleague the level he wanted Libor rates set at.

“‎It was done very openly and in a very normal way and gave the impression this was a regular, normal thing,” Contogoulas said on his first day in the witness box.

Contogoulas, 44, is one of five former Barclays bankers charged with conspiracy to defraud by manipulating Libor, the London interbank offered rate, a benchmark for rates on around $450 trillion of financial contracts worldwide.

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Ex-Barclays trader says pressured to lie about Libor setting

One of five former Barclays bankers on trial for the alleged rigging of a key Libor benchmark told a court on Friday he had lied about submitting rates for traders because he felt under pressure from his manager and the bank to “toe the line”.

Jonathan Mathew told the court that he had felt pressured by his manager at the time, Peter Johnson, who jurors heard this week had pleaded guilty in October 2014 to conspiring to manipulate Libor.

Johnson is the first man in Britain to plead guilty to charges related to Libor.

On Friday, Mathew told a London court that he had lied to investigators about taking requests from traders in making submissions to the benchmark, because he was worried he would lose his job and was scared about going up against his boss.

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Ex-Barclays trader stood to gain $172.50 bonus from alleged Libor fixing, court hears

An ex-Barclays trader accused of fixing a key financial benchmark for personal gain stood to earn a bonus of only $172.50 for his role in alleged rate-rigging in 2007, a London court heard on Friday.

Adrian Darbishire, lawyer for Ryan Reich, one of five men on trial for conspiracy to defraud by manipulating U.S. dollar Libor rates between June 2005 and September 2007, shared the estimated sum with the jury, in response to prosecution allegations that huge sums were involved.

“So what’s the loot? What’s the possible cash incentive?” Darbishire said on the opening day of defence arguments.

Britain’s Serious Fraud Office (SFO) has alleged that Reich, Barclays’ former rate submitter Jonathan Mathew and ex-traders Stylianos Contogoulas, Jay Merchant and Alex Pabon dishonestly agreed to procure or make false or misleading submissions of rates into the dollar Libor-setting process.

The five men have pleaded not guilty. Each count carries a maximum jail sentence of 10 years.

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Barclays must face electricity price-fixing lawsuit in U.S.

A U.S. judge ordered Barclays Plc (>> Barclays PLC) to face a proposed class-action lawsuit in which a California water utility accused the British bank of illegally manipulating electricity prices in the western United States, causing purchasers to overpay.

U.S. District Judge Victor Marrero in Manhattan on Monday said the Merced Irrigation District can pursue two claims that Barclays violated federal antitrust law, and one claim that the bank violated a California unfair competition law.

In July 2013, Barclays was fined $435 million by the U.S. Federal Energy Regulatory Commission for allegedly manipulating electricity prices in California and other western U.S. states from November 2006 to December 2008.

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Barclays Pays $50M To Settle NY Forex Rigging Claims

 

Law360, New York (February 18, 2016, 10:59 AM ET) — Barclays PLC has agreed to pay $50 million to settle claims that it misused a system intended to block stale foreign exchange prices as a way to boost the bank’s profits while hurting clients, according to court documents filed Wednesday in New York federal court.

Along with the cash payout, Barclays has also agreed to provide information that the plaintiff, Axiom Investment Advisors LLC, believes will help pursue similar claims against other banks that engaged in similar so-called “Last Look” practices.

Such practices involved putting holds on…

Source: Law360