Bloomberg News reports that Darrell Read said during his first day of testimony that brokers didn’t have the status to sway bankers when it came to setting the benchmark rate. Most brokers have fewer maths and computer skills and aren’t respected by the bankers who are their clients.
'Banks hold all the power', the 50-year-old Read said. 'The old image is of East End barrow boys paid to give prices and be entertaining'.
Read is one of six brokers from ICAP, Tullett Prebon and RP Martin Holdings on trial for conspiring to defraud by helping former UBS trader Tom Hayes rig a version of the London interbank offered rate tied to the yen.
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