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Deutsche Bk, HSBC Traders Suspected of Collusion on Libor Rate
July 20, 2012
[ by Howard Haykin ]
In a global probe that led to more than $450 million in fines for Barclays Plc last month, traders at Deutsche Bank AG, HSBC Holdings Plc, Societe Generale SA, and Credit Agricole SA are under investigation for interest-rate manipulation, a person with knowledge of the matter said.
Regulators are investigating the possible roles of Michael Zrihen at Credit Agricole, Didier Sander at HSBC, and Christian Bittar at Deutsche Bank, the person said on condition of anonymity because the investigation is continuing. The names of the banks and traders were reported earlier by the Financial Times.
Philippe Moryoussef, who last month left his job as a Singapore-based derivatives trader at Nomura Holdings Inc., is also under investigation for his role in the conduct at Barclays, where he worked from 2005 to 2007, according to two people with knowledge of the matter.
The CFTC, in its settlement with Barclays, said one of the bank’s traders tried to align strategies with at least four other banks’ traders in order to profit from positions in certain futures contracts.
Federal Reserve Chairman Ben S. Bernanke said regulators, including the CFTC and U.S. Securities and Exchange Commission, are investigating.
Traders involved in the alleged manipulation may be charged by U.S. prosecutors before the Labor Day holiday on Sept. 3, said a person familiar with the Justice Department investigation in Washington.
Libor is determined by a daily survey that asks banks to estimate how much it would cost them to borrow from one another for different timeframes and in different currencies.
Bittar and Zrihen didn’t reply to e-mails seeking comment, and Sander didn’t answer a message sent to a Facebook account under that name.
Bittar Departure. Michael Golden, a spokesman for Deutsche Bank, confirmed that Bittar left the bank last year and declined to comment on the investigation. Deutsche Bank has disclosed that it is cooperating with regulators in the U.S. and Europe in the probe.
Barclays spokesman Giles Croot, James Galvin, a spokesman for Societe Generale in New York and Juanita Gutierrez, a spokeswoman for HSBC declined to comment. Mary Guzman, a New York-based spokeswoman for Credit Agricole, did not respond to a request for comment.
[Bloomberg, 7/18/12]

