Fired banker loses €40m payoff over Libor fixing

 

At last, it seems, a banker may be paying a penalty for getting caught up in one of the City’s biggest scandals.

According to three people with knowledge of the move, Christian Bittar, who formerly worked as head of the money markets derivatives group at Deutsche Bank, has been forced to give up €40m (£34m) in deferred pay after being fired by the company.

He was let go after it was claimed that he colluded with a Barclays trader involved in attempts to rig Libor or other similar interest rates, and was said to have held “inappropriate conversations”.

It is understood that the bank first discovered his involvement in the affair in the autumn of 2011 after which he was suspended and later fired.

Mr Bittar made his name, and most of his money, during the height of the financial crisis in 2008. A proprietary trader – one who made bets with the bank’s own money – he was paid a percentage of his trading profits which vested over three years.

That implies that he may have been paid up to €80m (£50m) for that year’s work based on contracts common at the time, with the final third of the bonus, or profit share, paid in the third year. In Mr Bittar’s case that would have been 2011, when he was fired. However, banking sources cautioned that payout schedules for such star traders weren’t always based on a three-year deal.

The conversations said to have been uncovered by the bank’s internal probe took place when he was based in London in 2006 and 2007 and are not thought to have yielded any profits.

Deutsche is one of the banks which could face a penalty as a result of the Libor fixing scandal. However, The Independent has learnt that a settlement is unlikely to occur much before the end of the year.

The bank said yesterday: “Upon discovering that a limited number of employees acted inappropriately, we have sanctioned or dismissed employees, clawed back unvested compensation and will continue to do so as we complete our investigation.”

It maintained that Mr Bittar’s trading strategy was “subject to the bank’s risk limits”.

Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs People

Ashdown Group: HR Manager Shared Services - Uxbridge, - 1 Year contract

£50000 per annum: Ashdown Group: HR Manager Shared Services - Uxbridge, Stock...

Recruitment Genius: Graduate Human Resource Officer and Executive Assistant

Negotiable: Recruitment Genius: This is an exciting opportunity to join one of...

Ashdown Group: HR Assistant (Events business) - Central Manchester - £20K

£18000 - £20000 per annum + Benefits: Ashdown Group: HR Assistant (Events busi...

Recruitment Genius: Project Engineer

Negotiable: Recruitment Genius: This privately-owned company designs and manuf...

Day In a Page

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

How a costume drama became a Sunday night staple
Miliband promises no stamp duty for first-time buyers as he pushes Tories on housing

Miliband promises no stamp duty for first-time buyers

Labour leader pushes Tories on housing
Aviation history is littered with grand failures - from the the Bristol Brabazon to Concorde - but what went wrong with the SuperJumbo?

Aviation history is littered with grand failures

But what went wrong with the SuperJumbo?
Fear of Putin, Islamists and immigration is giving rise to a new generation of Soviet-style 'iron curtains' right across Europe

Fortress Europe?

Fear of Putin, Islamists and immigration is giving rise to a new generation of 'iron curtains'
Never mind what you're wearing, it's what you're reclining on

Never mind what you're wearing

It's what you're reclining on that matters
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence