Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Former Rabobank derivatives trader pleads guilty to wire, bank fraud, (Mar 24, 2015)
Organizations Mentioned:British Bankers’ Association | CoÖperatieve Centrale Raiffeisen-Boerenleenbank B.A.
By Greg Hammond, J.D.
Lee Stewart, a former senior derivatives trader for Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank), pleaded guilty yesterday in the federal district court in New York City to one count of conspiracy to commit wire and bank fraud by scheming to manipulate the U.S. Dollar and Yen London InterBank Offered Rate (LIBOR).
According to the Justice Department, during the time period relevant to the charges, LIBOR served as an average interest rate, which was based on submissions from leading banks around the globe. The submissions reflected the rates that banks believed they would be charged if they borrowed from other banks. In addition, LIBOR served as a reference rate for credit cards, consumer lending products, interest rate contracts, mortgages, and student loans. The rate was published by the British Bankers’ Association and is calculated for 10 currencies at 15 borrowing periods.
Stewart admitted that he worked as a senior derivatives trader at Rabobank’s London desk between 1993 and 2009, entering into derivative contracts concerning interest rate swaps connected to the U.S. Dollar LIBOR rate, according to a Justice Department announcement. Stewart also admitted that from May 2006 through early 2011, he conspired at Rabobank to manipulate the LIBOR benchmark interest rate.
A sentencing hearing is scheduled for June 9, 2017, the Justice Department said.
Companies: Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.; British Bankers’ Association
News: Antitrust AntitrustDivisionNews