View more on these topics

‘Flash crash’ trader wins bail


A trader accused of contributing to a Wall Street crash which wiped $800bn off the value of US shares has been bailed, the BBC reports.

In May 2010, the Dow Jones lost 600 points in just five minutes before rapidly recovering, leading to UK-based Navinder Singh Sarao being accused of market manipulation by US authorities.

The US Department of Justice claims that Sarao and his firm, Nav Sarao Futures, made £26m ($40m) illegally over five years by using software to place $200m of false trades from his parents’ home in Hounslow, west London.

The DoJ is seeking to extradite Sarao on charges of wire and commodities fraud, but the former trader has now been released on bail after his conditions were changed.

Sarao was originally required to put up £5m for bail, but argued this was impossible while his assets were frozen.

However, following a deal that saw him reveal the location of more than £30m in assets to authorities, Wesminster Magistrates Court dropped the £5m security requirement.

Under terms of his bail, Sarao must stay at his parents’ home each night and cannot travel internationally or use the internet.

A full extradition hearing is set to being on 24 September.


Jail banker

Ex-trader jailed for 14 years over Libor rigging

A former UBS and Citigroup trader has been found guilty of eight counts of conspiring to rig Libor and handed 14 years in jail. Tom Hayes, a 35-year-old former yen derivatives trader, represents the first conviction over the manipulation of interest rates. In a case brought by the Serious Fraud Office, prosecutors claimed Hayes asked […]


Ex-adviser jailed after conning pensioner out of £90k

A former financial adviser has been jailed for abusing his friendship with a pensioner to con her out of £90,000. The Lancashire Evening Post reports Iain Sarvent was sentenced to three years and eight months at Preston Crown Court after pleading guilty to one count of theft and three of fraud. According to the FCA register, […]

US authorities approach at least 10 RBS traders over Libor

US authorities have approached at least 10 Royal Bank of Scotland traders in connection with a criminal investigation into the alleged manipulation of Libor, according to The Times. So far, the US Department of Justice has only made initial approaches to the traders, who work in the bank’s markets division, as a first step to […]


US govt sues S&P over pre-crisis mortgage ratings

Credit ratings agency Standard & Poor’s is being sued by the US government over allegations it understated the risks of instruments that led to the financial crisis. The US Department of Justice filed a complaint against S&P and its parent company McGraw Hill yesterday, saying it was seeking civil money penalties and accusing the two […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. £30m in assets and he’s still living with his parents?

Leave a comment