A City bank chief from Twickenham has been cleared of rigging key interest rates by US courts overnight, ending an eight year legal nightmare.

Gavin Black, aged 52, who was the director of Deutsche Bank's money markets and derivatives desk in London, was charged alongside his New York-based colleague Matthew Connolly.

In theory – at one time - the two men faced as long as 30 years in prison and as much as a $1 million fine.

However, overnight, a US appeals court overturned the convictions of the two men who had previously been found guilty of rigging an important interest rate used as a guide to set rates on consumer borrowing.

The court ruled that their conduct was not against the rules, which mirrors similar findings by the legal systems in a number of European countries.

In fact, not only were the activities of the men not illegal, it has subsequently emerged that the Bank of England was involved in similar activity on a much larger scale.

The US Court of Appeals for the Second Circuit ruled that it was not against the rules to seek to influence the interest rate estimates that a bank submits of the cost of borrowing cash.

That directly contradicts a key British appeal court ruling that was used to prosecute 24 traders, nine of whom were jailed between 2015 and 2019.

advertisement

Last night, Mr Black's lawyer, Seth Levine, said his client had committed no crime and was 'deeply appreciative' that the appeals panel agreed.

He said: "We have long maintained that Gavin Black committed no crime, and we are deeply appreciative that the Court of Appeals carefully reviewed the record and reached the same conclusion, as reflected in its thorough and well-reasoned decision."

He added: "Black did his job, as he has lived his life, with honour and honesty".