Manipulation of Libor four former Barclays bankers sentenced to prison – The World

Epilogue in the case of former traders who manipulated the Libor interbank rate. Four former Barclays bankers were sentenced Thursday, July 7 to jail, did you learned from the UK Office of fight against organized financial crime (SFO).

Read also: Why traders manipulated the Libor interbank rate

This trial was the third on the Libor scandal in the UK. Tom Hayes, a banker who worked for UBS and Citigroup, has already been sentenced to eleven years in prison appeal. A second trial was concluded with the acquittal of six financial earlier this year. After the January acquittals, these sentences are therefore a victory for the Serious Fraud Office (SFO), the origin of the investigation.

Jay Merchant was sentenced to six and a half years prison; Jonathan Mathew, four years; and Alex Pabon two years and nine months. The three men, convicted of having manipulated between June 2005 and August 2007 version dollar Libor were judged since April in the third trial in the UK on this vast scandal. They were convicted on Monday.

A fourth banker, Peter Johnson, who had pleaded guilty and had therefore not been considered, was also sentenced Thursday to a sentence of four years in prison as well as ‘payment of 114,500 pounds (133,800 euros). In setting out the verdict, the judge Southwark London court stressed the “lack of integrity” of those bankers.

Two former colleagues of convicted bankers, and Stylianos Contogoulas Ryan Reich, have also been tried for the same reasons, but the jury did not reach a verdict. The SFO said Wednesday request a new trial against them

Read also:. A former trader at Deutsche Bank acknowledges having manipulated the Libor

• what the Libor affair?

the Libor (for “London Interbank Offered Rate” ) is an interbank rate reference in the world of finance that affect a huge mass of financial products, some of which lending to households and businesses.

the case known as the “Libor” cuts made in several manipulations interbank rates (the rates at which banks lend money to each other): the UK rate (Libor) and European (Euribor). This case is not limited to Britain and the European Union, since these rates (which apply each time a fifteen maturities from one day to one year and ten currencies so in total about 150 rates) are used as reference in all financial markets in the world

Read also:. British merchant banks dieters

• when the case she broke?

the scandal erupted in 2012 when Barclays revealed it had to pay 290 million pounds to end investigations in the UK and the US on handling. Other major institutions had to pay for billions in this case

Libor. Chronology of events

Four ex Barclays -banquiers were sentenced Thursday to prison terms for manipulating Libor. Here are some key dates of this financial scandal

2005. From then until 2009, traders of the British bank Barclays conduct manipulations 257 the London interbank rate Libor and its European equivalent (Euribor), according to a report (2012) of the UK market policeman

April 2008. Wall Street Journal published a survey indicating significant doubt on the veracity of the statements of the panel responsible for developing Libor

Summer 2008. banks US and British central officially decided to look into what is starting to become a “case”, after warning mails and phone calls, including from leaders of Barclays. They wanted to warn the authorities actions “problematic” by the other banks …

2010: Barclays gives rules to follow internally to avoid collusion between persons responsible for reporting rates to the panel (the “submitters”) and those who have interest in these rates move in one direction or the other, traders of derivatives markets in particular.

2011: Royal Bank of Scotland (RBS) dismisses four people suspected of involvement in the manipulation of interbank rates

July 2012. Bob Diamond resigned as CEO of Barclays, which paid 60 million pounds fine (200 million US) after pleading guilty in manipulating Libor. In the aftermath, investigations were launched against ten banks in the US and the British Bankers Association is removed from her supervisory role Libor.

December 2012 three men were arrested in London by British rule of fight against fraud in connection with the investigation into the Libor. Swiss bank UBS to pay $ 1.2 billion in fines in the United States, 160 million pounds in the UK and 59 million Swiss francs to helvètes authorities

December 2013.: EU condemns eight banks to 1.7 billion euro fine for having agreed on manipulating Libor and Euribor rates. Historical fine in Europe

April 2015. Deutsche Bank disburses $ 2.5 billion (2.2 billion euros) to settle lawsuits over the Libor manipulation on the British and American markets

August 3, 2015 . Tom Hayes, former trader of UBS and Citigroup, was sentenced to 14 years in prison in London. This penalty will be reduced to 11 years on appeal

January 2016. six financial suspected accomplices Tom Hayes were acquitted for lack of evidence

May 2016 a former trader at Deutsche Bank acknowledges having manipulated the Libor. His confession led to the indictment of two former colleagues on June 2 by US authorities.