Two former bankers of Barclays have been imprisoned for a total of nine years for being involved in rigging a global interest rate system at the height of the 2008 financial crisis.
A London jury sentenced Colin Bermingham, a senior rate submitter who is 62 years old, to five years.
While Carlo Palombo, a former derivatives trader who is 40 years old, received a four-year term.
The pair were said to be guilty of conspiring to rig the Euribor interest rates – a benchmark that was utilised by banks to determine the cost of lending to each other.
The rates then underpin wider financial products including savings rates, loans, and mortgage rates.
The lawyer of Palombo said that his client was “devastated” and needed some time to come to terms with the decision of the court before making any appeal. On the other hand, the legal team of Bermingham had no immediate comment.
The two has since denied any wrongdoing.
Bermingham joined Barclays at 18 while Palombo joined the bank in his early 20s. Bermingham said that he did not believe that he had ever falsely submitted an interest rate and Palombo claimed that he thought that it was a “perfectly legitimate practice” until it was banned in 2009 as an investigation in the United States gathered steam.
Prosecutors said that the pair worked together to defraud by dishonestly, manipulating Euribor between the period of January 2005 and December 2009.
Palombo earned approximately £5.4 million while Bermingham earned £3.5m during the same period.
Both are set to face a further hearing to determine the costs and proceeds of criminal action.
Lisa Osofsky, the Head of the Serious Fraud Office (SFO), stated: “These men deliberately undermined the integrity of the financial system to line their pockets and advance the interests of their employers.”
She added: “We are committed to tracking down and bringing to justice those who defraud others and abuse the system.”