Darrell Read pleaded not guilty to two charges of conspiracy to defraud. Photo / AP
Darrell Read pleaded not guilty to two charges of conspiracy to defraud. Photo / AP
The trial of a New Zealand resident accused of trying to manipulate international banking rates is due to begin in London today.
Wellington resident and money broker Darrell Read is due to go to trial before a jury in London's Southwark Crown Court and has pleaded not guilty to twocharges of conspiracy to defraud.
The proceedings are scheduled to begin tonight New Zealand time and could last up to 14 weeks.
The United Kingdom's Serious Fraud Office accuses the British ex-pat of conspiring with two colleagues at London-based broking house ICAP, to make false submissions for Yen Libor for the benefit of one of their clients.
Libor - or the London interbank offered rate - is set every morning and is a key part of the relationship between borrowers and lenders around the world.
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.
The alleged offending by Read and his co-accused is said to have taken place between August 2006 and September 2010 while one of their clients, Tom Hayes, worked at both UBS in Japan and then at Citigroup. Hayes was convicted in August and sentenced to 14 years jail. He is appealing both his conviction and sentence.
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.
