Ex-traders-handed 13-year prison term for rate-rigging EURIBOR

Two former traders was jailed for more than 13 years for attempting to rig the key financial guideline in the midst of the financial crisis.

The serious fraud office (SFO) said 46-year-old Christian Bitter, which was once one of Deutsche Bank’s most profitable traders, and 50-year-old former Barclays trader Philippe Moryoussef conspired to fix the Interbank rate (euribor) for personal enrichment.

“Derivatives trading is a form of betting. You took the analogy one step further, loading the dice,” said the judge Gledhill in sentencing Mr. Alexis.

“In my opinion, the reason for your insults came at least partly from the satisfaction of being able to beat the system, undetected for years, by manipulating the euribor rate to your own trading advantage.”

Mr. Alexis was sentenced to five years and four months in court, the Southwark crown while Mr. Moryoussef was sentenced to eight years.

The charges stem from a lengthy investigation, the SFO in rigging the EURIBOR after a major investigation into manipulation of the London interbank offered rate (LIBOR).

“Today’s result is the culmination of six years of investigation, in which a frame, so I would like to commend the hard work of our team,” said SFO Director mark Thompson.

The SFO is investigating rate-rigging cases for six years

Credit:
Bob Rendtorff

However, the jury reached the verdict against former Barclay bankers Palombo Carlo, Colin Bermingham and Cisse Bohart, who will be retried in January.

Euribor rate is a key financial benchmark, which underlies about 180 trillion (£140 billion) worth of financial products worldwide.

The charges come as the lawyers of the arrested former UBS trader Tom Hayes, the first person ever convicted of manipulating the rate of LIBOR, to build up his fight to clear his name.

Deutsche Bank and Barclays declined to comment.

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