NZ resident on trial over Libor-fixing

  • 06/10/2015
Former ICAP broker Darrell Read (Reuters)
Former ICAP broker Darrell Read (Reuters)

A New Zealand resident is among six men about to go on trial in London for allegedly trying to fix an international bank lending rate.

Darrell Read, a Briton who worked for UK-based brokers ICAP in Wellington, Noel Cryan, Danny Wilkinson, Colin Goodman, James Gilmour and Terry Farr, are accused of conspiracy to defraud by trying to manipulate the Libor (London Interbank Offered Rate) linked to the Japanese yen.

The benchmark interest rate is behind trillion of dollars of financial deals.

The trial at Southwark Crown Court, where former Black Cap Chris Cairns is also on trial for perjury, starts on Tuesday (local time) and is set to last 12-14 weeks.

It is claimed the six men conspired with Tom Hayes, a former Tokyo-based trader for UBS who later joined Citigroup, and others to manipulate the Libor rate in offences alleged to have taken place between August 2006 and September 2010.

The case is set to look at the alleged role of the brokers from ICAP, Tullett Prebon and RP Martin.

Read, Wilkinson and Goodman worked for ICAP, Cryan worked for Tullett Prebon, while Gilmour and Farr worked for RP Martin.

They are alleged to have dishonestly agreed to procure or make submissions of rates by panel banks which were false or misleading.

It is alleged they "deliberately disregarded the proper basis for the submission of those rates, thereby intending to prejudice the economic interests of others".

NZN