'Copious amounts of curry' offered in Kiwi libor case

Darrell Read pleaded not guilty to two charges of conspiracy to defraud. Photo / AP

New Zealand resident Darrell Read allegedly offered an English colleague "copious amounts of curry" in return for helping fix Libor rates, according to reports of his London trial.

Read is on trial with five co-accused for allegedly conspiring to manipulate Libor rates with the now-convicted trader Tom Hayes.

Libor - or London interbank offered rate - sets the price for banks, international financiers or anyone wanting to raise funds through the interest rate markets.

The accused group are former brokers of ICAP, RP Martin and Tullett Prebon and their trial began in the Southwark Crown Court in London this week.

The sextet - Wellington resident Darrell Read, Colin Goodman, Danny Wilkinson, Terry Farr, James Gilmour and Noel Cryan - are defending charges of conspiracy to defraud.

Although Read moved to New Zealand in 2007, he continued working for ICAP - which in 2013 was fined US$87 million by regulators on both sides of the Atlantic for its role in the Libor scandal, which has seen numerous financial institutions penalised.

They six are accused of helping Hayes, a former Tokyo-based UBS and Citigroup trader, profit from his yen derivatives trades.

Read's nickname among the group was "Big Nose" while Goodman's was "Lord Libor".

In the trial's second day, the jury heard brokers were offered takeaway curry, beer and
restaurant meals in return for helping to fix the rates, The Guardian has reported.

The jury heard, according to the news outlet, that Read told Lord Libor: "Can you please get 3 and 6-month [Libor rates] as high as is possible today. We'll sort you out with a curry takeaway next week in recognition of your efforts. Thanks mate."

In another email exchange, Read allegedly promised Goodman "copious amounts of curry" in return for manipulating the rates, The Guardian reported.

The trial continues and is expected to take up to 14 weeks.

The Libor Rates Rigging Case:
• Libor - or London interbank offered rate - is woven into the fabric of the world's capital markets.
• The rate sets the price for banks, international financiers or anyone wanting to raise funds through the interest rate markets.
• From major international deals through to home mortgages, Libor is key to the relationship between borrowers and lenders globally.
• Financial instruments worth hundreds of trillions of dollars are tied to Libor.
• A British banking trade group sets the Libor every morning after international banks submit estimates of borrowing costs.
• Libor became engulfed in scandal after the global financial crisis and allegations emerged that banks had rigged these rates.
• A string of financial institutions have paid billions in settlements.