Bloomberg - Barclays trader told regulator bosses must have known about rate rigging

Barclays Canary Wharf

One of five former Barclays traders accused of rigging benchmark interest rates told regulators that his bosses, including the investment bank’s chief operating officer Mike Bagguley, must have known about the manipulation, U.K. fraud prosecutors said at a London trial.

Bloomberg News report that Jay Merchant alleged that Bagguley, former global head of fixed income Eric Bommensath and another executive, Harry Harrison, knew about rigging of London interbank offered rates, in a 2014 interview with the U.K. Serious Fraud Office.

Bommensath allegedly told Merchant over lunch that he was “to introduce the New York swaps desk to these new practices,” said James Hines, a lawyer for Britain’s SFO. “Teach them how to communicate with the cash desk in London and make the New York desk more profitable,” Hines told jurors, relaying the interview in a London court Thursday.

All three of the executives, who aren’t on trial, deny Merchant’s allegations and will testify for the prosecution later in the 13-week trial, Hines said. 

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