Ex-Deutsche Bank Traders Convicted For Role In LIBOR-Rigging Scheme - US Justice Dept.

WASHINGTON (UrduPoint News / Sputnik - 18th October, 2018) A US jury convicted two former Deutsche Bank traders for participating in a scheme to manipulate LIBOR rates, the Justice Department said in a press release.

"A former supervisor of Deutsche Bank's Pool Trading Desk and a former derivatives trader were convicted today in New York for their participation in a scheme to manipulate the London Interbank Offered Rate (LIBOR), a critical global benchmark tied to trillions of Dollars in derivatives, loans, mortgages, and other financial products," the release said on Wednesday.

Former Deutsche Bank supervisor Matthew Connolly, 53, of the US state of New Jersey, was convicted of conspiracy and two counts of wire fraud while former derivatives trader Gavin Campbell Black, 48, of London, was convicted of conspiracy and one count of wire fraud.

A date for sentencing has yet to be set, the release noted.

According to the release, Connolly directed subordinates to submit false numbers to ensure the LIBOR for US Currency was set at a rate favorable to him, the bank and his traders. Black, for his part, asked traders to adjust LIBOR submissions to favor his derivative positions.

The published LIBOR for US currency is calculated based on submissions from a panel of 16 financial institutions, including Deutsche Bank, the release said.