Former Deutsche Bank Trader's Conviction Overturned

The conviction of Christian Bittar, a former Deutsche Bank trader who was imprisoned in 2018 for manipulating the benchmark interest rate Euribor, has been overturned by the Court of Appeal. This decision follows a lengthy legal battle and marks the latest in a series of convictions related to interest rate rigging scandals to be quashed.

Momentum in these cases has shifted significantly following a Supreme Court ruling in July 2023. The Supreme Court determined that judges had erred in previous trials by directing juries that any attempt to influence interest rates for commercial gain was unlawful as a matter of law. Instead, the court ruled, the legality of such actions should be a question of fact for the jury to decide.

Earlier this week, the same UK court overturned the convictions of five former Barclays bankers involved in similar rate-rigging trials. Bittar, who followed proceedings via video link from Switzerland due to visa issues, expressed his relief, stating, "I have waited a very, very long time for this day." He added, "Finally the injustice of what I and others suffered has been recognised."

These developments mean that of the approximately 19 traders convicted in the US and UK between 2015 and 2019 across nine criminal trials, 18 have now been acquitted. Only one former trader, ex-Barclays trader Peter Johnson, remains convicted. Johnson, who was also an original whistleblower in the scandal, pleaded guilty based on advice that he had little chance of winning at trial. The court has confirmed that he too has applied to appeal his conviction.

The traders were prosecuted for manipulating Libor and Euribor, benchmark interest rates that track the cost of borrowing cash between banks. These rates have been used to set interest rates on millions of mortgages and commercial loans. The scandal erupted in 2012, revealing that banks had misrepresented their positions during the rate-setting process, which could have been used to boost profits or mask financial difficulties.

Calls have emerged from lawyers and politicians for the Bank of England and the Treasury to release all their records concerning their roles in interest rate manipulation during the financial crisis. These calls stem from concerns about a potential cover-up involving central banks and governments. Former Conservative cabinet minister David Davis described the exonerated traders as "victims of a scapegoating exercise" resulting from alleged government misbehavior in manipulating Libor rates to rescue the economy after the 2008 financial crisis.

In 2022, all convictions in the United States were overturned after an appeals court found insufficient evidence that the traders' actions had broken any rules or laws. Tom Hayes, the first trader jailed for rate rigging in 2015 and initially sentenced to 14 years, is now seeking damages from his former employer, UBS. His sentence was later reduced to 11 years on appeal.

Bittar's wife, Caroline, commented on the personal impact of the convictions, noting that their family had lost 15 "valuable years" with their children growing up under the shadow of injustice. She expressed anticipation for their family to "enjoy life with our family and friends without this shadow hanging over us."