If you were a Libor trader at Barclays, it’s unlikely that you’d like your name to be broadcast to the world at large. Not only would you then become inextricably linked to the dubious emails circulated by Barclays’ Libor team, but you would be eternally vilified by a banker bashing public.
Unfortunately, therefore, this is what may soon come to pass. The names of 208 Barclays Libor traders have reportedly been handed to the courts. The Times says 42 of them will be tried in the UK next October, although a ‘disclosure hearing’ will take place in March 2013. Barclays has requested that the names be kept secret throughout the process, but the judge presiding over the case has apparently said that this won’t happen unless either the individuals or Barclays apply for confidentiality within the next two weeks. There is no guarantee that these applications will be successful.
Alongside the fear of a public lynching, Barclays traders must also contend with the inevitability that their bonuses will be clawed back. Inspired by the Barclays case and other scandals, the FSA has decided to increase the emphasis it places on claw backs. Andrew Bailey, head of the FSA’s prudential business unit has reportedly written to global banks in London stressing that past bonuses must be recovered from errant bankers and that this year’s bonuses must be reduced or completely removed.
JPMorgan is taking Javier Martin Artajo, former manager of trader Bruno Iksil, to court for his part in the $6bn loss that hit the bank earlier this year. We understand the case may be related to Martin Artajo’s attempt to contest his bonus claw back.
Yesterday Goldman promoted its partners, today Goldman promotes its MDs. (Guardian)
70 Goldman partners have been promoted and so 20 must leave. (WSJ)
In a sign that structured credit isn’t dead, Jason H. Brauth, head of investment-grade credit trading has made partner at Goldman. (Bloomberg)
ICAP has closed its US trading business. (Financial Times)
The jury in the Kweku Adoboli case has retired and is deciding what to do next. (BBC)
Vontobel chief executive says next year will be challenging too. (Bloomberg)
Bad bonuses for JPMorgan’s electricity traders: they’ve been forbidden to trade power at market rates for the next six months. (Financial Times)
What next for RenCap bankers? (Businessweek)
“There is no more room for independent investment banking in Russia.” (Financial Times)
Why the French transaction tax isn’t working. (Bloomberg)