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Libor rigging defendant says he was beaten and humiliated at work Libor rigging defendant says he was beaten and humiliated at work
(35 minutes later)
A Barclays trader accused of fixing Libor was humiliated and “whacked” across the back of the head with a baseball bat when he made mistakes at work, a court has heard. A Barclays trader accused of conspiring to fix the Libor benchmark lending rate was humiliated and “whacked” across the back of the head with a baseball bat when he made mistakes at work, a court has heard.
Jonathan Mathew started working at the bank when he was just 19, having not been to university or had any formal training. The 35-year-old told Southwark crown court how a senior trader, Peter Johnson, was a “hard taskmaster” and would berate him in the office when he got things wrong. Jonathan Mathew started working at the bank when he was just 19, not having been to university or having had any formal training. The 35-year-old told Southwark crown court how a senior trader, Peter Johnson, was a “hard taskmaster” and would berate him in the office when he got things wrong.
Giving evidence, Mathew explained that he failed the regulator’s exams to become an “approved person” three times. He said that although Johnson was quick to pull him up on his mistakes and was verbally aggressive, he was also a good teacher.Giving evidence, Mathew explained that he failed the regulator’s exams to become an “approved person” three times. He said that although Johnson was quick to pull him up on his mistakes and was verbally aggressive, he was also a good teacher.
Mathew told jurors: “He had a 12in baseball bat on his desk and he whacked me across the back of the head. “It wasn’t particularly hard. It was designed to humiliate me.” Mathew told jurors: “He had a 12in baseball bat on his desk and he whacked me across the back of the head. It wasn’t particularly hard. It was designed to humiliate me.”
He described another incident where Johnson, who it can now be revealed has admitted rigging Libor, forced him to stand on a chair and recite the capital cities of the world when he became aware Mathew did not know where Manila was. He described another incident in which Johnson, who it can now be revealed has admitted rigging Libor, forced him to stand on a chair and recite the capital cities of the world when he became aware Mathew did not know where Manila was.
The court was also shown an email that Johnson, also known as PJ, sent to Mathew, with the subject “Brick Dain”. Jurors heard this was so that the message would pass through the company’s online filters.The court was also shown an email that Johnson, also known as PJ, sent to Mathew, with the subject “Brick Dain”. Jurors heard this was so that the message would pass through the company’s online filters.
Mathew told the court that he learned what to do with Libor from Johnson, and that as far as he knew, he was doing nothing wrong. He added that he never received any training from Barclays.Mathew told the court that he learned what to do with Libor from Johnson, and that as far as he knew, he was doing nothing wrong. He added that he never received any training from Barclays.
Mathew eventually went on to look after the books for a number of currencies, including the Canadian dollar, and when Johnson was absent took over responsibility for the US dollar book, for which the senior trader had five brokers.Mathew eventually went on to look after the books for a number of currencies, including the Canadian dollar, and when Johnson was absent took over responsibility for the US dollar book, for which the senior trader had five brokers.
Bill Clegg QC, defending, asked his client: “When you were covering for him, when he was not there, who would you phone?”Bill Clegg QC, defending, asked his client: “When you were covering for him, when he was not there, who would you phone?”
Mathew replied: “Whichever broker he had in his handover.”Mathew replied: “Whichever broker he had in his handover.”
Referring to what he understood of rate requests received from brokers, he added: “PJ said we get these requests from time to time, that we should help these guys out. We should take a firm-first approach. ‘As long as it doesn’t do violence (to the) Libor adjuster’.” Referring to what he understood of rate requests received from brokers, he added: “PJ said we get these requests from time to time, that we should help these guys out. We should take a firm-first approach. ‘As long as it doesn’t do violence (to the) Libor adjuster.’”
Shown a number of rates that he submitted, Mathew was asked: “At the time you submitted the rate, were you acting honestly?”Shown a number of rates that he submitted, Mathew was asked: “At the time you submitted the rate, were you acting honestly?”
“Yes,” he replied.“Yes,” he replied.
Mathew, Stylianos Contogoulas, 44, Jay Vijay Merchant, 45, Alex Pabon, 37, and Ryan Reich, 34, are accused of manipulating the US dollar London Interbank Offered Rate (Libor) between 1 June 2005 and 31 August 2007.Mathew, Stylianos Contogoulas, 44, Jay Vijay Merchant, 45, Alex Pabon, 37, and Ryan Reich, 34, are accused of manipulating the US dollar London Interbank Offered Rate (Libor) between 1 June 2005 and 31 August 2007.
Mathew, from Shenfield in Essex, Contogoulas, from Greece; and Merchant, Pabon and Reich, all of whom live in America, deny one count of conspiracy to defraud. Mathew, from Shenfield in Essex; Contogoulas, from Greece; and Merchant, Pabon and Reich, all of whom live in America, deny one count of conspiracy to defraud.
The charge alleges that they dishonestly agreed to procure or make submissions of rates by Barclays, a panel bank, into the dollar Libor setting process which were false or misleading. The charge alleges that they dishonestly agreed to procure or make submissions of rates by Barclays, a panel bank, into the dollar Libor setting process that were false or misleading.
Mathew will continue giving evidence on Friday.Mathew will continue giving evidence on Friday.