U.S. Charges Former Rabobank Traders for Fraudulent Yen Libor Submissions

The U.S. government has charged three former traders of Rabobank for manipulating benchmark interest rates, reports Bloomberg.


Charged were Paul Robson of the U.K., Paul Thompson of Australia and Tetsuya Motomura of Japan. The three “agreed to make false and fraudulent yen Libor submissions for the benefit of their trading positions” from May 2006 to January 2011, according to the government. If convicted, each of the three defendants faces as long as 30 years in prison.


“These three traders -- working from Japan, Singapore and the United Kingdom -- deliberately submitted what they called ‘obscenely high’ or ‘silly low’ Libor rates in order to benefit their own trading positions,” Acting Assistant U.S. Attorney General Mythili Raman said in a statement obtained by Bloomberg.


Governments around the world are investigating the alleged abuse of financial benchmarks by companies that play a central role in setting them. Banks that have been fined include Deutsche Bank AG and Royal Bank of Scotland Group Plc.


Rates under investigation include the London interbank offered rate, or Libor, and ISDAfix, used to determine the value of interest-rate derivatives.



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