Four Barclays’ Traders Given Steep Jail Sentences for LIBOR Abuse
- Jay Merchant, Peter Johnson, Jonathan Mathew, and Alex Pabon are heading directly to prison after a UK judge's ruling.
The dust may have started to settle with a string of London interbank offered rate (Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term) probes that have extended back over three years now, though that does not mean regulators are not still in the process of cracking down on individuals who manipulate LIBOR rates. A total of four former Barclays’ traders were consequently slapped with prison sentences for their involvement in the scandal, which continues to result in harsh penalties for financial wrongdoing.
According to a recent Bloomberg report, Jay Merchant, Peter Johnson, Jonathan Mathew, and Alex Pabon each received jail sentences for white-collar crime, ranging from just under three years to over six. The LIBOR rigging scandal managed to engulf the financial services industry over the past few years, which resulted in record fines for leading banking institutions.
By extension, traders have now felt the latest brunt of the regulatory hammer, in the form of harsh penalties and jail time. Merchant was given a 6.5 year sentence by UK judges today, while Johnson and Mathew each received four years in prison – Pabon will serve a total of thirty-three months in jail.
The sentences follow after similar crackdowns at UBS and Deutsche Bank – the former UBS trader Tom Hayes is presently serving an eleven-year prison sentence for LIBOR rigging, which has largely snuffed out most guilty parties at several institutions.
Regarding the four recently convicted individuals, each of the four Barclays bankers were ultimately accused of participating in a conspiracy to help manipulate LIBOR between 2005 to 2007.
The dust may have started to settle with a string of London interbank offered rate (Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term) probes that have extended back over three years now, though that does not mean regulators are not still in the process of cracking down on individuals who manipulate LIBOR rates. A total of four former Barclays’ traders were consequently slapped with prison sentences for their involvement in the scandal, which continues to result in harsh penalties for financial wrongdoing.
According to a recent Bloomberg report, Jay Merchant, Peter Johnson, Jonathan Mathew, and Alex Pabon each received jail sentences for white-collar crime, ranging from just under three years to over six. The LIBOR rigging scandal managed to engulf the financial services industry over the past few years, which resulted in record fines for leading banking institutions.
By extension, traders have now felt the latest brunt of the regulatory hammer, in the form of harsh penalties and jail time. Merchant was given a 6.5 year sentence by UK judges today, while Johnson and Mathew each received four years in prison – Pabon will serve a total of thirty-three months in jail.
The sentences follow after similar crackdowns at UBS and Deutsche Bank – the former UBS trader Tom Hayes is presently serving an eleven-year prison sentence for LIBOR rigging, which has largely snuffed out most guilty parties at several institutions.
Regarding the four recently convicted individuals, each of the four Barclays bankers were ultimately accused of participating in a conspiracy to help manipulate LIBOR between 2005 to 2007.