News - Economics / markets
The Royal Bank of Scotland, the UK’s largest government-owned lender, has dismissed at least four employees in connection with a probe of potential interest-rate manipulation, sources told Bloomberg News.
Traders at different banks appeared to be trying to influence the movement of LIBOR, the London interbank offered rate, and similar benchmarks to profit from derivatives tied to the rates, the Financial Times reports, citing information submitted to regulators.
Citigroup and Deutsche Bank are also said to have dismissed, put on leave or suspended traders as part of the investigation, according to two more people, who declined to be identified.
The Times reported yesterday that Icap, “is looking into the conduct of three of its staff in regards to an alleged manipulation of the London interbank offered rate, or LIBOR. One employee at the interdealer broker has been suspended pending an internal investigation and two others have been placed on administrative leave.”
A JP Morgan Chase trader in London who was under an internal investigation in the LIBOR probe left the firm of his own volition two weeks ago, also according to Bloomberg.
The investigation is being handled the UK Financial Services Authority and the US Securities and Exchange Commission, among other authorities.
Regulators' requests for information from interdealer brokers marks a widening of the global investigation into whether there were attempts to manipulate the London, Tokyo and euro interbank offered rates, known as LIBOR, TIBOR and EURIBOR.
By some estimates LIBOR, which is derived from a survey of banks conducted daily on behalf of the British Bankers' Association in London, serves as the benchmark for about $360trn of financial products worldwide.
Reporting by ShareCast
Most read articles
Updating your subscription status