Defense of ex-Deutsche Bank traders aims to use 88 documents in deposition of former BBA director

Maria Nikolova

The Government continues to view as helpful John Ewan’s prior testimony that it was forbidden by the definition for LIBOR panel banks to make interest rate submissions that suited their derivatives traders’ books.

As the start of the trial in a LIBOR-rigging case targeting Matthew Connolly and Gavin Campbell Black, former derivative product traders at Deutsche Bank, approaches, the deadlines to secure crucial testimony are tight. The defense of the two traders, which has secured a New York Court permission to depose former British Bankers’ Association (BBA) director John Ewan, is now working on the details of the deposition.

The US Government, which is a party in this case, is not remaining passive either with regard to this testimony. On Wednesday, August 22nd, the Department of Justice filed a Letter with the New York Southern District Court informing Judge Colleen McMahon of the latest developments around this deposition.

The parties in the case have been in contact with the BBA’s counsel at Latham & Watkins, and, although no certain date can be confirmed yet, Mr Ewan and defense counsel are holding September 6 and 7 as potential dates for the deposition pending its compulsion by the UK court.

Defense counsel have identified 88 documents for which they are seeking the BBA’s certification, which may be used at Mr Ewan’s deposition. While the defense has not yet identified which of these documents they will be using as deposition exhibits, based on a preliminary review, the US Government anticipates to object to certain documents on the grounds they are irrelevant, cumulative, and/or hearsay.

Additionally, the DOJ has requested admission of certain portions of Mr Ewan’s prior trial testimony in the event his deposition cannot take place before trial. The government continues to view Mr Ewan’s prior testimony as helpful (though not necessary) to its case in chief, including his testimony that it was forbidden by the definition for LIBOR panel banks to make interest rate submissions that suited their derivatives traders’ books.

The Judge has stressed that there will be no delay in the trial of this action. The jury will be selected on September 17, 2018, whether the deposition of Mr Ewan has been concluded or not.

“This trial has been postponed three times. It will not be postponed a fourth time for any reason”, the Judge said.

Mr Ewan is expected to offer material testimony concerning the considerations and flexibility allowed by the BBA in the interpretation of the LIBOR definition. According to the defense, he is set to provide exculpatory evidence to counter the Government’s argument that the Deutsche Bank USD LIBOR submissions “were false precisely because they did not conform to the BBA’s definition.”

The case is captioned USA v. Connolly (1:16-cr-00370).

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