Ex-Barclays traders jailed for rigging Euribor rate during crisis

Colin Bermingham outside court in London on Feb 13. (Bloomberg pic)

LONDON: Two former traders at Barclays bank have been sentenced to a total of nine years in prison for manipulating the Euribor interbank rate, a London court ruled on Monday.

Carlo Palombo received four years imprisonment and Colin Bermingham five years after sentencing at Southwark Crown Court “for manipulating the Euro Interbank Offered Rate (EURIBOR) at the height of the financial crisis” a decade ago, Britain’s Serious Fraud Office confirmed in a statement.

The SFO said Palombo and Bermingham conspired with two other former traders who had already been sentenced for their parts in the scandal that tarnished the reputation of several banking giants.

Last July, Christian Bittar, formerly at Deutsche Bank, received a UK prison sentence of more than five years.

At the same time, former Barclays trader Philippe Moryoussef was sentenced in his absence to eight years in prison.

“These (four) men deliberately undermined the integrity of the financial system for personal gain and to advantage the banks they worked for,” SFO director Lisa Osofsky said on Monday.

“We are committed to bringing those who defraud others to justice, regardless of how long ago the offences took place.”

Several banks have meanwhile paid hefty fines over Euribor-rigging in Britain and the United States, while the European Union has tightened legislation against market manipulation.