Financial safety

DOJ indicts two former Deutsche Bank traders for LIBOR fraud

Two former Deutsche Bank AG  traders -- the bank’s supervisor of the Pool Trading Desk in New York and a derivatives trader in London -- were indicted for their alleged roles in a scheme to manipulate the U.S. Dollar London InterBank Offered Rate, the DOJ said today.

Matthew Connolly, 51, of Basking Ridge, New Jersey, and Gavin Campbell Black, 46, of London, were charged with one count of conspiracy to commit wire fraud and bank fraud and nine counts of wire fraud.

Connolly was taken into custody Thursday.

The London Interbank Offered Rate, or LIBOR, is the benchmark for short term interest rates for high-demand currencies around the world. It's used to set interest rates for trillions of dollars of mortgages, credit cards, and student loans, among other financial products.