💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Jury selection begins in ex-Rabobank traders' U.S. trial over Libor scheme

Published 10/13/2015, 10:52 AM
Updated 10/13/2015, 10:59 AM
© Reuters. Former Rabobank employee Anthony Allen arrives at federal court in Manhattan, New York
C
-
UBSG
-

By Nate Raymond

NEW YORK (Reuters) - Jury selection got under way on Tuesday in the trial of two former Rabobank [RABO.UL] traders from Britain facing U.S. charges that they engaged in a scheme to manipulate Libor interest rates.

The trial of Anthony Allen, 44, and Anthony Conti, 46, in federal court in Manhattan marks the first in a case by the U.S. Justice Department spilling out of a global investigation into whether various banks sought to manipulate Libor.

Both men have pleaded not guilty to charges including conspiracy and wire fraud stemming from their alleged role in helping manipulate U.S. dollar and yen Libor rates to benefit the Dutch lender's trading positions.

Libor, or the London interbank offered rate, is a short-term rate banks charge each other for loans that is calculated based on submissions by a panel of banks. It underpins $450 trillion of financial products globally from mortgages to credit card loans.

U.S. and European authorities have been investigating whether banks fraudulently submitted artificial rate estimates to bolster their profits on trading derivatives linked to Libor.

Those investigations have resulted in charges against 22 people in the United States and United Kingdom and around $9 billion in regulatory settlements with financial institutions.

Allen, Rabobank's former global head of liquidity and finance, and Conti, a senior trader, were indicted in the United States in October 2014, a year after the bank reached a $1 billion deal resolving related U.S. and European probes.

Their trial follows an earlier one in London involving alleged yen Libor manipulation that led to the conviction of Tom Hayes, a former UBS AG (VX:UBSG) and Citigroup Inc (N:C) trader who was sentenced in August to 14 years in prison.

Another trial in London began last week for six former brokers accused of manipulating yen Libor rates. They have pleaded not guilty.

© Reuters. Former Rabobank employee Anthony Allen arrives at federal court in Manhattan, New York

The case is U.S. v. Allen, U.S. District Court, Southern District of New York, No. 14-cr-00272.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.