Former Credit Suisse trader Kareem Serageldin expects to reach a plea agreement with the U.S. government over allegations of a $3bn fraud involving subprime mortgage bonds, a British court heard on Wednesday.
Reuters reports that Serageldin is the most senior banker charged in a scandal dating back to 2007, in which mortgage-backed securities traders were caught trying to cover up losses on their books, prosecutors say.
The ex-trader, 39, appeared at Westminster Magistrates' Court for a short hearing as part of extradition proceedings. The case was adjourned until January 14th next year.
In the meantime, the news agency reports that German parliamentarians questioned Deutsche Bank's compliance chief Stephan Leithner and former board member Hugo Baenziger on Wednesday over how banks including the German lender manipulated global benchmark interest rates.
The London interbank offered rate (Libor), which is used to price billions of dollars worth of financial contracts, was put under the spotlight in June when UK and U.S. authorities fined British bank Barclays (BARC.L) a record $450m for manipulating rates during the credit crunch.