Ex-Deutsche Bank Trader Banned by FCA After Libor Plea

  • Curtler pleaded guilty to rigging Libor in U.S. in October
  • Ex-trader `lacks honesty and integrity,' regulator says

Michael Curtler, a former senior trader at Deutsche Bank AG, was banned by U.K. regulators from working in the finance industry five months after pleading guilty to U.S. charges related to manipulating Libor.

The Financial Conduct Authority said Curtler’s involvement in the rigging of U.S. dollar submissions related to the London interbank offered rate disqualified him from working in the industry.

“Dishonesty must disqualify him from U.K. financial services,” Mark Steward, director of enforcement and market oversight at the FCA, said in a statement Wednesday. “Consequently, he must be prohibited.”

About a dozen banks have paid $9 billion in penalties in relation to interest-rate rigging over the last 3 1/2 years. More than 20 traders have been charged in the U.K. and the U.S. with conspiracies to rig Libor, a benchmark tied to trillions of dollars of derivatives and loans.

Curtler, 43, pleaded guilty in Manhattan federal court to a charge of conspiring to commit wire and bank fraud in connection with the Libor-rigging scheme. He faces a maximum prison term of 30 years. 

Lacks Integrity

The FCA said it found “that Mr. Curtler lacks honesty and integrity and that he is not a fit and proper person to perform functions in relation to any regulated activity."

Curtler worked at Deutsche Bank between 1993 and December 2012, according to the FCA. Since about 2000, Curtler traded financial instruments that were tied to the U.S. dollar variant of Libor. He manipulated the rate following requests from Deutsche co-workers "to benefit the trading positions of Deutsche and the individual traders," the regulator said in its decision.

Curtler was the 13th person charged in the U.S., and the first from Frankfurt-based Deutsche Bank. More than 30 individuals have been charged in Libor-related cases, and Tom Hayes was convicted last year. The former UBS Group AG and Citigroup Inc. trader, who prosecutors alleged was at the center of a conspiracy, was jailed in August. His sentence was reduced to 11 years from 14 years upon appeal in December.

Curtler is the third person to be barred by the FCA over Libor manipulation. Lee Stewart and Paul Robson, two former traders at Rabobank, were banned last year.

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