| LONDON, July 19
LONDON, July 19 Two former brokers appeared in a
London court on Friday accused of conspiracy to defraud in
connection with a global investigation into the Libor interest
rate rigging scandal, as prosecutors broaden their inquiry
beyond big banks.
Terry Farr and James Gilmour, former staff at UK interbroker
dealer RP Martin, who were arrested last December alongside
former Citigroup and UBS trader Tom Hayes, are
the first brokers to face criminal action.
A central cog in the world financial system, the London
interbank offered rate (Libor) is used as a price reference for
hundreds of trillions of dollars worth of contracts, ranging
from complex derivatives to everyday credit card bills.
Farr, dressed in a dark suit and tie, and Gilmour, dressed
in an open neck white shirt, sat in the dock in London's
Westminster Magistrates Court and spoke only to confirm their
names and addresses and their bail conditions.
The two men, who both live in the southeastern English
county of Essex, are charged with conspiracy to defraud with
employees at multiple financial institutions including UBS
, HSBC, Rabobank, Citi and interdealer
broker Tullett Prebon, according to court documents.
Farr is charged with two counts and Gilmour one.
The scandal has sparked public and political outrage and
laid bare the failure of authorities and bank bosses to spot the
manipulation. So far, regulators have fined Britain's Barclays
, Switzerland's UBS and Royal Bank of Scotland a
total of $2.6 billion and prosecutors have charged four men.
Hayes, Gilmour and Farr are the first to face court. The
fourth suspect, Roger Darin, was charged by U.S. prosecutors
last December. He is currently in Switzerland.
Farr, 41, and 48-year-old Gilmour were granted bail until
July 30, when their case will be transferred for a hearing to
the higher Southwark Crown Court. They gave no indication of how
they would plead.