Ex-Deutsche Bank Trader Admits to Rigging Libor in U.S.

  • Timothy Parietti headed derivatives trading desk in New York
  • Parietti is cooperating with the U.S. Libor investigation

A former Deutsche Bank AG trader secretly pleaded guilty in New York to conspiring to manipulate a benchmark interest rate tied to trillions of dollars in securities and loans and prosecutors said he agreed to help U.S. investigators in their probe.

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Timothy Parietti, who served as a managing director of the bank’s money markets derivatives trading desk in Manhattan from January 2005 to December 2012, admitted on May 26 that he conspired to rig the London interbank offered rate for two years, according to a transcript unsealed Wednesday. The plea was reported earlier by Reuters.

“From early 2006 through approximately 2008, while in Manhattan, I was involved in a process of asking the Deutsche Bank employees who submitted the bank’s Libor submissions, to take my trading positions into account in making their Libor submissions, so that my trades might be more profitable,” Parietti told U.S. District Judge Paul Engelmayer, according to a transcript. 

“I knew that this practice was dishonest,” Parietti said. “I participated in this dishonest practice and I accept responsibility for my role. I’m sorry for my conduct.”

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Parietti, who started at Deutsche Bank in 2000 and said he has an MBA degree from the Wharton School of the University of Pennsylvania, is cooperating with the government in a relationship that may last several years, Richard Powers a Justice Department lawyer, told the judge. Parietti isn’t to be sentenced until it’s over.

Parietti was allowed to remain free on $500,000 bail. Earlier this month, two former Deutsche Bank traders, Matthew Connolly and Gavin Black, were charged with rigging Libor from 2005 to at least 2011.

Parietti’s lawyer Larry Krantz declined to comment about the plea.  

The case is U.S. v. Parietti, 1:16-cr-00373, U.S. District Court, Southern District of New York (Manhattan).

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