Infograhic
NEW YORK: Deutsche Bank AG has asked a judge to toss out a former trader’s lawsuit that claims the company made him a scapegoat for its manipulation of the London Inter-Bank Offered Rate (Libor) market.
The bank’s lawyers said in a filing that contrary to Matthew Connolly’s claims, there was no evidence that it “initiated” the trader’s prosecution or made false and misleading statements about him.
Connolly, who once led the bank’s New York trading desk, was convicted in 2018 of wire fraud and conspiracy and sentenced to nine months of home confinements and a US$100,000 (RM433,414) fine.
But early last year a federal appeals court reversed his conviction saying prosecutors had failed to prove that Connolly and an alleged co-conspirator had influenced the bank into making false or misleading submissions for the London interbank offered rate.
Libor is based on a daily survey of short-term borrowing costs estimated by banks. It’s used to value trillions of dollars of financial products.
Connolly had filed a malicious prosecution lawsuit against the bank earlier. — Bloomberg
