Barclays fostered a culture where traders faced "significant consequences," including firings, if they didn’t follow instructions of bosses, according to a former trader at the bank on trial for rigging Libor.
"You definitely followed instructions from your boss," Alex Pabon said Thursday in a London court in response to questions from his lawyer about the bank’s culture. "It’s not really an organization where you can decide, ‘Well I’m going to do this’ or ‘I’m not going to do this.”’
Bloomberg News reports that Pabon was testifying about his Barclays’ career under Jay Merchant, who is also on trial. Pabon said Merchant told him to talk to the Libor submitters about the rates they wanted to be set, which he did and thought "was completely in the normal course of business."
Pabon and Merchant are on trial with former colleagues Stylianos Contogoulas, Ryan Reich and Jonathan Mathew for conspiring to fix the London interbank offered rate, or Libor, which is tied to trillions of dollars in securities and loans from 2005 through 2007. Another ex-trader, Peter Johnson, has pleaded guilty to the charge.
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