Christian Bittar, a former Deutsche Bank trader, had his conviction for manipulating the Euribor benchmark interest rate quashed by the Court of Appeal. This follows the overturning of similar convictions for ex-Barclays bankers in recent trials. Bittar, who watched proceedings from Switzerland due to visa restrictions, expressed relief after years of legal battle. The decision highlights a broader pattern of judicial review in rate-rigging cases, with 18 out of 19 traders previously convicted now acquitted.
The Libor scandal, which emerged in 2012, revealed how banks manipulated lending rates to boost profits and mask financial difficulties. Between 2015 and 2019, nine criminal trials in London and New York resulted in convictions, but most have since been overturned. Only one trader, Peter Johnson, remains convicted, though he is also appealing his sentence. The ruling has sparked calls for transparency from the Bank of England and the Treasury, with concerns over potential cover-ups of central bank involvement.
Legal experts and politicians are now pushing for full disclosure of government and central bank roles in rate manipulation during the financial crisis. Bittar's wife, Caroline, highlighted the personal toll of the ordeal, noting the family's loss of 15 years. The case is part of a larger trend, with evidence suggesting state influence in rate-setting, suppressed during trials. Former Conservative minister David Davis criticized the government for misleading Libor rates to stabilize the economy, leading to the scapegoating of traders.
The legal landscape shifted significantly in 2025 when the Supreme Court ruled that judges had misdirected juries by assuming any rate manipulation was unlawful. This led to the overturning of convictions in both the US and UK. Tom Hayes, the first trader jailed for rate rigging, is now seeking damages from UBS. The case underscores the complexities of legal interpretation and the evolving understanding of financial misconduct in the wake of the 2008 crisis.