Two former Barclays senior bankers get prison sentences over EURIBOR manipulation
Carlo Palombo was sentenced to 4 years in prison, whereas Colin Bermingham was sentenced to 5 years.
Carlo Palombo and Colin Bermingham were sentenced to a total of 9 years imprisonment at Southwark Crown Court for manipulating the Euro Interbank Offered Rate (EURIBOR) at the height of the financial crisis.
Palombo, former Barclays Vice President of Euro Rates, and Bermingham, former Managing Director at Barclays, have been found to have conspired together with former Principal Trader at Deutsche Bank, Christian Bittar and former Barclays Director Phillipe Moryoussef to submit false or misleading EURIBOR submissions to change the published rate and benefit their positions.
Carlo Palombo was sentenced to 4 years, whereas Colin Bermingham was sentenced to 5 years. Both will face a further hearing to determine costs and proceeds of crime action.
Christian Bittar and Phillipe Moryoussef were convicted of and sentenced for the same conspiracy in July 2018.
The SFO explains that the bankers regularly discussed preparations to manipulate the rate and spoke of the importance of successfully rigging the rates. In an October 2006 email, for example, Moryoussef urged Palombo to raise the rate – “We have 2 billion on that date. We definitely have to make one BP (basis point) on that fixing. Good luck”.
The SFO decided to accept allegations of the manipulation of LIBOR and EURIBOR for investigation in July 2012.