SFO begins Euribor criminal proceedings


16 November, AtoZForex.com, Lagos – The Euro Interbank Offered Rate (Euribor) is a rate compiled daily, which is published by the European Banking Federation, calculated by averaging the interest rates at which Eurozone banks offer to lend unsecured funds to other banks in the interbank market.

Ten ex-bankers have now been officially charged by the Serious Fraud Office (SFO) for their role in the alleged attempt to manipulate the Euribor. This list includes former bankers from Deutsche Bank and Barclays bank. Nine men and one woman have been summoned to the Westminster magistrates court on 16 January to proceed with the case. Six are ex employees of Deutsche Bank, while four are former Barclays bankers.

Euribor criminal proceedings

This only marks the beginning of criminal proceedings to come in relation to the case as the SFO has stated that “criminal proceedings will be issued against other individuals in due course”. The charges against these ten ex bankers will be the first relating to Euribor. The bankers involve in the case include Deutsche Bank Employees: Christian Bittar, Achim Kraemer, Andreas Hauschild, Joerg Vogt, Ardalan Gharagozlou and Kai-Uwe Kappauf. While the Barclays Bank Employees include: Colin Bermingham, Carlo Palombo and Sisse Bohart.

This follows from recent charges against the major banks relating to an alleged attempt to manipulate the London Interbank Offered Rate (LIBOR) and FX fix manipulation case. Already, the Libor case has led to authorities around the world levying heavy fines on some of the world’s most powerful banks and brokerages, aggregating about $9 billion. Also, about 21 men have been charged with wrong doing so far in connection with the case.

FX manipulation fines

The FX manipulation case has also resulted in about $10 billion paid in fines against banks accused of conspiracy among their traders who adopted computer chat rooms with names including “The Cartel,” “The Mafia” and “The Bandits’ Club” to illegally coordinate their actions.

Discoveries from the investigations into the global FX manipulation case has exposed that fraudulent activities took place not only in the influential chat rooms, but was spread through emails, instant messages and many other communication tools. As the regulators study tens of thousands of messages, they have also stumbled upon alarming messages from bank executives. All of these contributing to the heavy fines slammed on these banks.

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