Christian Bittar, former AG trader at Deutsche Bank, who at one point was given an estimated 90 million pounds ($118 million) as bonus, ha s been banned from the finance department. This is after a discovery that he had plan to rig a crucial bench mark rate. The Financial Conduct Authority, through an e mail said that Bittar lacked integrity and was unfit to exercise such a role. He also insisted on the fact backed by his conviction and imprisonment saying that failure of this could have led to a $6.5 million penalty. Bittar was very good in mathematics and hence one of the highest paid traders in the bank. He traded interest rates related products joined to benchmarks such as the Euribor. He got a sentence of more than five years in July. It was discovered that he worked with Euribor submitters who were at Deutsche Bank and some other banks to send figures that were high or low to benefit his trade practices. He even went further to request for numbers benefiting other traders allied to him, which is against the bank’s ethics.
Executive director, Mark Steward, of the enforcement and oversight in FCA told the regulator on the notice banning Bittar that, it was a high level of misconduct. He went on to say that it was also a betrayal of the public interest in the financial issues that he was given to help the banks. Bittar’s case by the lawyers was, however, not immediately returned, it was banned in April. However, no publication was made until Friday when a resolution was made in a civil lawsuit related case. It was a seminal moment by the U.K prosecutors on Bittar’s guilty plea. It was due to him being one of the most paid trades to get a conviction in the global rate-rigging case.
Deutsche Bank got a fine of $2.5 billion from the global regulators in 2015 for failing to prevent rigging attempts in the benchmarking rates. Judge Michael at the time of Michael Gledhill sentencing said that Bittar, who was among the world’s best traders, was not motivated by greed but by the satisfaction of the ability to change the system without any trace. This was among the high profile cases by senior bank traders on trade-malpractice related cases recently .Banks need to invest more on their systems, work force and policies to prevent such related cases in future.