Two former traders for Rabobank have been handed prison sentences in the US in relation to the investigations into Libor fixing.
Anthony Allen, previously global head of liquidity at Rabobank and Anthony Conti, a money market trader at the bank were the first to be charged for their role in manipulating the benchmark rate.
Allen was sentenced to a two year jail term while Conti – the less senior trader – was sentenced to one year.
The result was reportedly disappointing for prosecutors who were seeking prison terms that were five times longer.
In a statement to the media, the US Department of Justice said: “The scheme to manipulate this rate to increase their bank’s profits undermined the integrity of our financial markets and the public’s confidence in the fairness of the financial system.
“This case demonstrates our commitment to work with domestic and foreign law enforcement authorities and regulators to hold financial criminals responsible for their crimes and ensure the integrity of the marketplace for investors worldwide.”
The US sentences follow the prosecution of former UBS and Citi trader Tom Hayes last year. Hayes was originally sentenced to 14 years but had this cut to 11 years on appeal.
Libor is the primary benchmark for short-term interest rates for several currencies around the world and is used as a reference rate for many financial products, including interest rate contracts and mortgages.