Ex-Deutsche Bank trader pleads guilty to manipulating Libor

NEW YORK (Reuters) - United States prosecutors have secured a guilty plea from a second former Deutsche Bank AG trader for conspiring to manipulate Libor, the benchmark interest rate at the centre of global investigations of various banks, court records show.

Timothy Parietti, a former managing director of Deutsche Bank's New York money market derivatives trading desk, pleaded guilty on May 26 in Manhattan federal court to conspiring to commit wire fraud and bank fraud, records unsealed on Wednesday (June 22) showed.

According to a transcript, Parietti admitted that from 2006 to 2008, he participated in a scheme with other bank employees to manipulate Libor so that trades he made on financial instruments linked to the benchmark might be more profitable.

"At the time, I knew that this practice was dishonest. I participated in this dishonest practice and I accept responsibility for my role," Parietti said. "I'm sorry for my conduct."

The plea came days before the US Justice Department on June 2 unveiled an indictment against two other former Deutsche Bank traders, Matthew Connolly of New Jersey and Gavin Campbell Black of London, in connection with the scheme.

Both cases followed the earlier guilty plea in October of a former senior trader at Deutsche Bank, Michael Curtler of London.

The bank agreed in April 2015 to pay US$2.5 billion (S$3.34 billion) to resolve related US and UK probes.

Mr Larry Krantz, Parietti's lawyer, declined comment, as did a spokeswoman for Deutsche Bank. A spokesman for the Justice Department had no immediate comment.

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