A Break in the Libor Case
- August 4th, 2012
A 30-year-old former Barclays Plc swaps trader in New York, who was fired from the bank in 2010, is among those drawing scrutiny from prosecutors in the deepening scandal over the manipulation of global benchmark interest rates.
U.S. prosecutors in Washington, D.C. are looking at Ryan Reich's activities while at Barclays between August 2006 and March 2010, said several people familiar with the situation, who declined to be identified because the bid-rigging investigation is ongoing.
Reich, now a portfolio manager with New York-based hedge fund WCG Management, was dismissed from Barclays for allegedly sending inappropriate emails seeking internal bank information, according to two sources familiar with the situation.
One of those sources, who used to work for the bank, said the information Reich sought concerned how the Libor benchmark rate was going to be priced, information that could have been useful for his trading positions.
The government has not confirmed whether or not this kid is important to them but it appears there are no shortage of people who know things out there.
Read the whole story here:
The word is that several individual trader arrests and charges are coming before Labor Day for manipulation of Libor for personal gain. Get up to speed on the basics with this graphic.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.