Back in May, former Deutsche Bank traders Gavin Black and Matthew Connolly were indicted on charges of attempting to manipulate Libor in a way that "benefited their own or Deutsche Bank's financial positions in derivatives that were linked to those benchmarks." The news wasn't great for Black, Connolly, Deutsche Bank, or any of the subordinates Black and Connolly supposedly tasked with submitting "false and fraudulent Libor contributions" but it was exciting for anyone placing bets on how many DB employees might ultimately be convicted of rate rigging, who'd wagered "a f*ck-ton". But apparently Black doesn’t care about anyone trying to make a side profit off of the Deutsche Bank staff’s penchant for taking an elastic view of securities laws, so he pleaded not guilty today.*
Gavin Black, who was a director on the bank’s money market derivatives and pool trading desks in London from 1997 until early 2015, made a preliminary appearance in Manhattan federal court after agreeing not to fight extradition from the U.K. He was released on $500,000 bond by U.S. District Judge Colleen McMahon, who’s presiding over the case. His travel is restricted to the U.S., U.K., and New Zealand. Black and Matthew Connolly, who was a supervisor in New York, were charged in June with rigging the rate, according to a revised U.S. indictment filed last month. Connolly has denied wrongdoing. Both men are accused of conspiring to manipulate the London interbank offered rate, or Libor, in a scheme that ran from 2004 to at least 2011. More than a half dozen others at the bank, including managing directors and a vice president, on desks that spanned Europe, North America and Asia, participated in the plot.
*Maybe for other reasons too. MAYBE.