Ex-Barclays traders sentenced to up to six-and-a-half years for Libor rigging

Thu Jul 7, 2016 11:54am EDT
 
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By Kirstin Ridley

LONDON (Reuters) - Four former Barclays (BARC.L: Quote) bankers were sentenced to between 33 months and six-and-a-half years in jail by a London judge on Thursday for conspiring to rig global benchmark interest rates.

Calcutta-born Jay Merchant, 45, the most senior of the men to face a jury in the case, was sentenced to six-and-a-half years in the latest London Libor trial. The New York-based former derivatives trader was convicted unanimously.

Merchant's junior, 38-year-old American Alex Pabon, was sentenced to two years and nine months and junior British Libor submitter Jonathan Mathew, 35, was handed a four-year sentence. Both men were convicted by majority verdict.

Mathew's former boss, 61-year-old former Barclays veteran Peter Johnson was also sentenced to four years. The former senior dollar Libor submitter and head dollar cash trader pleaded guilty in October 2014 and did not stand trial.

Judge Anthony Leonard said the men had abused their position of trust, undermined the integrity of the banking industry and offended over a significant period. They will serve half their sentence in prison before being released on license.

They were promptly led out of the glass-enclosed dock by court officials.

The sentences come four years after Barclays became the first of 11 powerful banks and brokerages to be slapped with a hefty fine for their role in the rate fixing scandal, sparking a political backlash that forced out former CEO Bob Diamond, an overhaul of Libor rules and the criminal inquiry.

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Former Barclays trader Jay Merchant arrives for sentencing at Southwark Crown Court in London, Britain July 7, 2016. REUTERS/Neil Hall