June 19, 2024

DealBook: Ex-Brokers Appear in Court in Libor Case

Terry FarrPaul Hackett/ReutersTerry Farr

LONDON — Two former brokers at RP Martin Holdings made their first court appearance in London on Friday in connection to charges tied to the manipulation of global benchmark interest rates.

Terry Farr, 41, and James Gilmour, 48, spoke briefly to confirm their names, addresses and dates of birth at the Westminster Magistrates’ Court in central London.

Mr. Farr, who was dressed in a black suit and red tie, faces two charges of fraud spanning between 2006 and 2010 related to the suspected manipulation of submissions to the London interbank offered rate, or Libor.

Mr. Gilmour, another former employee of RP Martin who wore slacks and a cream shirt in the courtroom, is charged with one count of fraud in connection to similar activities between 2006 and 2009.

Both sets of charges contend that the men conspired with employees of UBS, the Dutch bank Rabobank, HSBC and other financial institutions to manipulate the benchmark rates for personal financial gain, according to the charge sheet.

James Andrew GilmourPaul Hackett/ReutersJames Gilmour

The court documents said that the former RP Martin brokers also conspired with Tom A.W. Hayes, a former Citigroup and UBS trader who has also been arrested in connection to the rate-rigging scandal.

During a brief court appearance, the district judge, John Zani, said the case would be transferred to crown court. The two men will make their first appearance there on July 30.

Mr. Farr and Mr. Gilmour remain free on bail and are not allowed to leave the country or talk to each other or other implicated individuals, according to the terms of each of the men’s bail.

Article source: http://dealbook.nytimes.com/2013/07/19/ex-brokers-appear-in-court-in-libor-case/?partner=rss&emc=rss

DealBook: Barclays to Buy British Retail Unit From ING

A branch of Barclays in London.Andy Rain/European Pressphoto AgencyA branch of Barclays in London.

LONDON – Barclays agreed on Tuesday to buy the British savings and loan business of the Dutch firm ING Group.

The deal reflects Barclays shifting focus toward retail banking after a recent rate-manipulation scandal led to the resignation of its former chief executive, Robert E. Diamond Jr. The firm’s new chief, Antony P. Jenkins, previously ran the bank’s retail banking operations, and he has said that he will stop business activities that pose a “reputational risk” to the British bank.

Last week, Barclays announced a broad reorganization of its investment banking unit, the group at the center of the rate-rigging case. Hugh E. McGee III, one of the firm’s top deal makers, became its most senior corporate and investment banker in the Americas, while Eric Bommensath was tapped to run a combined fixed-income and equities sales and trading division.

Under the terms of the deal announced on Tuesday, the British bank will acquire deposits of £10.9 billion ($17.5 billion) and mortgages worth a combined £5.6 billion from ING Direct U.K. The acquisition also will add 1.5 million customers to its existing 15 million client base, according to a Barclays statement.

The British bank will acquire ING Direct U.K.’s mortgage book at a 3 percent discount, while the deposits will be acquired at par value, the firms said in separate statements.

“The acquisition of ING Direct U.K. is a good fit with Barclays’s existing U.K. retail banking business,” Ashok Vaswani, head of the British retail and business banking unit of Barclays, said in a statement.

The deal, which is expected to close in the second quarter of 2013, will result in a net loss of 260 million euros ($336 million) for ING. The Dutch bank added that the loss would be offset by 330 million euros of extra capital that would be freed up when the deal is completed.

ING has been required to dispose of assets around the world as part of a bailout from its local government during the financial crisis. Last month, ING sold its 9 percent stake in Capital One though a public offering worth around $3 billion.

Article source: http://dealbook.nytimes.com/2012/10/09/barclays-to-buy-british-retail-unit-from-ing/?partner=rss&emc=rss