City Watchdog Reverses Bans on Four Traders After Convictions Quashed

The Financial Conduct Authority (FCA) has revoked trading bans on four men whose convictions for manipulating benchmark interest rates were recently quashed by the Court of Appeal. The decision impacts Colin Bermingham, Philippe Moryoussef, Jonathan Mathew, and Christian Bittar.

These individuals had previously faced prison sentences for manipulating the London Interbank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor). However, their convictions were later overturned amid claims that the traders were scapegoats for broader misconduct by banks preceding the financial crisis.

Philippe Moryoussef, speaking through his lawyers, stated that while the FCA's decision to lift the ban is welcome, it comes after 14 years of significant personal and professional repercussions. He noted that his career, reputation, and livelihood have been impacted and that the decision cannot compensate for the lost years or repair the damage done.

Jonathan Mathew expressed his intention not to return to a career in finance but welcomed the FCA's decision following the quashing of his conviction. He raised questions about why the FCA had pursued him with a substantial fine and a lifetime ban earlier, only for it to be overturned.

Christian Bittar described the day as the end of a 15-year struggle for justice.

Moryoussef, Mathew, and Bermingham were among six individuals whose rate-rigging convictions were overturned this week. Bittar, a former Deutsche Bank trader, and the five others, including those who worked at Barclays, saw their convictions annulled.

The Serious Fraud Office (SFO) acknowledged in August that the convictions of the Barclays traders might be unsafe, following a Supreme Court ruling that quashed the convictions of two other traders, Tom Hayes and Carlo Palombo. Lawyers for the affected traders argued that the jury instructions in their trials were too similar to those used in the trial of Hayes, which the Supreme Court had deemed incorrect.

The SFO's legal team informed the court that they did not oppose the appeals. Lord Justice Edis, along with Mr. Justice Goose and Mr. Justice Moody, subsequently quashed the convictions.

Jonathan Mathew, formerly of Barclays, was sentenced to four years in prison in 2016 after being convicted of conspiracy to defraud. Bermingham, a former managing director at Barclays, received a five-year sentence in 2019. Moryoussef, also a former Barclays trader, was sentenced in his absence in 2018 to eight years in prison after fleeing to France, where he could not be extradited because the offense was not a crime in France at the time of the alleged conduct. Bittar, who pleaded guilty to conspiring to manipulate Euribor, was jailed for five years and four months; his conviction was also quashed this week.

In a statement, the FCA confirmed it had reviewed the men's bans in light of the quashed convictions. The authority stated that because these convictions formed the basis of its actions, the bans on Bermingham, Moryoussef, Mathew, and Bittar have been revoked, and the FCA will take no further action against them in relation to this matter.

Tom Bushnell, a partner at Hickman & Rose, welcomed the FCA's prompt revocation of the bans but emphasized that significant questions remain regarding the fairness of the trials that led to the convictions and prohibitions. He highlighted the considerable personal and professional damage caused by these sanctions.