Law360, New York (August 31, 2017, 10:54 PM EDT) — U.S. Department of Justice lawyers made a potentially serious error in a Libor-rigging case against a former Deutsche Bank trader Wednesday when they mistakenly revealed the nature of testimony he was compelled to give to U.K. authorities in a separate probe.
The DOJ partially redacted a motion to conceal the content of former Deutsche Bank trader Gavin Black’s testimony before the U.K. Financial Conduct Authority out of concern it could taint the DOJ’s Libor-rigging case against him. But the DOJ lawyers failed to properly excise the…
Deutsche Bank AG and JPMorgan Chase & Co have agreed to pay a combined $148 million (114 million pounds) to end private U.S. antitrust litigation claiming they conspired with other banks to manipulate the yen Libor and Euroyen Tibor benchmark interest rates.
The preliminary settlements, totalling $77 million for Deutsche Bank and $71 million for JPMorgan, were detailed in filings late Friday in the U.S. District Court in Manhattan, and require a judge’s approval.
They followed similar settlements last year with Citigroup Inc and HSBC Holdings Plc totalling $23 million and $35 million, respectively.
Three former Barclays (>> Barclays PLC) traders jailed for manipulating Libor benchmark interest rates after a London trial have been denied a request to appeal against their conviction and sentence, the wife of one said on Friday.
Julie Pabon said her husband, Alex, and former colleagues Jay Merchant and Jonathan Mathew were recently notified that their requests had been rejected by the Court of Appeal.
The men’s lawyers and the UK Serious Fraud Office (SFO), the prosecutor in the case, did not respond to requests for comment.
Pabon, an American, was sentenced to two years and nine months in jail in July. Merchant, his former New York-based superior, was sentenced to six-and-a-half years, and Mathew, a London-based junior rate submitter, was handed four years.
“I am shocked and saddened yet somewhat relieved that our fight appears to be nearing the end,” Julie Pabon wrote in an email received by Reuters.
Julie Pabon, an American who lives in the United States and had appealed directly to the head of the SFO, David Green, on behalf of her husband, said Alex had sent her a text message on June 30 after his London trial saying: “I’m sorry … guilty…”
Deutsche Bank has cleared its chairman of accusations by shareholders that he was partly to blame for the bank’s poor cooperation with authorities over alleged rate-rigging, daily Sueddeutsche Zeitung has cited financial sources as saying.
Last year, Deutsche Bank agreed to settle a case over the alleged manipulation of interbank rates such as Libor for a record $2.5 billion with U.S. and British authorities, which had accused the lender of obstructing their investigations.
Some shareholders subsequently accused Chairman Paul Achleitner and other board members of being responsible for the bank’s poor cooperation, which led to it having to pay more to settle the case than other lenders.
Law360, New York (October 26, 2016, 2:55 PM EDT) — Bondholders suing major banks for allegedly conspiring to manipulate the London Interbank Offered Rate told a Manhattan federal judge on Wednesday that they have settled with UBS AG and Barclays Bank PLC.
UBS has reached a settlement with bondholders over Libor-rigging claims. (Credit: AP) The bondholders, whose claims against the banks were resurrected by the Second Circuit in May, told U.S. District Judge Naomi Reice Buchwald that they have reached a settlement with UBS and are finalizing one with Barclays over claims that the banks engaged…
Barclays (>> Barclays PLC) has reached a $100 million (£76.70 million) multi-state settlement over charges that it manipulated the Libor and Euribor interest rate benchmarks, New York Attorney General Eric Schneiderman said on Monday.
The settlement with 44 states marks the latest in a series of enforcement actions the bank has faced in connection with Libor manipulation.
Barclays is the first of several banks under investigation by state attorneys general to reach a settlement, Schneiderman said in a statement, adding that the bank cooperated with the multi-state probe.
He said government entities and non-profits were “defrauded of millions” when they entered into swap contracts with Barclays as a result of the rate-rigging.
In 2012, Barclays reached a $453 million agreement with the U.S. Justice Department, the Commodity Futures Trading Commission and British authorities to settle parallel charges.
As part of its agreement with the Justice Department, Barclays admitted to wrongdoing that occurred between August 2005 and May 2008, when some of its traders called their counterparts at competing institutions and colluded to submit Libor rates that benefited their trading positions.
“Barclays is pleased to have resolved the state attorneys’ general investigation into Barclays’ legacy LIBOR- and Euribor-related activities,” a Barclays spokesman said.
“We believe this settlement is in the best interests of our shareholders and clients, and allows us to continue to focus on the future and serve our clients.”
Another crime escaped by the banksters. I am not surprised by this since we haven’t heard anything on DOJ’s probes into LIBOR against the banks…
JPMorgan Chase & Co. said U.S. and U.K. authorities ended probes into its activities involving Libor and other benchmark rates without issuing fines, allowing the American bank to escape the scandal lightly compared to other firms.
The U.S. Justice Department told the bank in June that it closed an inquiry into the rate-fixing scheme, and other probes by the U.K.’s Financial Conduct Authority and the Canadian Competition Bureau were also ended without action, the New York-based firm said Wednesday in a U.S. Securities and Exchange Commission filing.
A former Rabobank trader pleaded guilty on Thursday to conspiring to manipulate benchmark interest rates, as U.S. prosecutors dropped separate charges against three ex-ICAP Plc (>> ICAP plc) brokers acquitted in a related British trial.
Paul Thompson, an Australian and former head of money market and derivatives trading in Northeast Asia for the Dutch bank, pleaded guilty in federal court in Manhattan to a single conspiracy count, admitting to scheming to manipulate Libor.
“I apologise to those who were harmed by my actions,” he said in court.
Posted in Uncategorized
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.