Washington, D.C. – Citibank, N.A., along with its affiliates Citibank Japan Ltd. and Citigroup Global Markets Japan Inc., have been penalized $175 million by the U.S. Commodity Futures Trading Commission (CFTC) for manipulating key benchmark interest rates. The CFTC issued an order finding that the banks engaged in manipulative behavior related to the London Interbank Offered Rate (LIBOR) and the Euroyen Tokyo Interbank Offered Rate (Euroyen TIBOR).
The investigation revealed that Citigroup Global Markets Japan Inc. (CGMJ) attempted to manipulate Yen LIBOR and Euroyen TIBOR between February 2010 and June 2010 to benefit derivatives trading positions. A senior trader at CGMJ allegedly pressured contacts at other banks to influence LIBOR submissions, while a senior manager pressured Citibank Japan Ltd. (CJL) submitters to adjust Euroyen TIBOR rates to favor the trader’s positions. On several occasions, CJL submitters reportedly considered these requests when making their submissions.
Separately, the CFTC found that Citibank, N.A. falsely reported U.S. Dollar LIBOR submissions from the spring of 2008 through the summer of 2009, motivated by a desire to avoid negative media attention and protect the bank’s reputation during the height of the financial crisis. The bank faced liquidity concerns during this period, and submissions were allegedly influenced by these reputational concerns.
As part of the settlement, Citibank and its affiliates will jointly and severally pay the $175 million penalty. They are also ordered to cease and desist from further violations of the Commodity Exchange Act and adhere to undertakings designed to ensure the integrity of benchmark interest rate submissions. The CFTC acknowledged Citibank’s self-reporting of the Yen LIBOR misconduct and its subsequent cooperation with the investigation.
“The CFTC remains steadfast in its commitment to ensure the integrity of global benchmarks,” stated Aitan Goelman, CFTC Director of Enforcement. “We will hold financial institutions accountable for undermining benchmarks for personal profit. The CFTC also recognizes and values timely self-reporting and cooperation from responsible market participants.”
Source: CFTC.gov
Related Federal Cases
- Gerardo Heriberto Nuñez Nuñez, Elder Fraud Scheme, Boston MA, 2026 · Pennsylvania
- James Pavlounis, Social Security Disability Benefits Fraud, New Roc… · Washington
- HHS Office of Inspector General, Health Fraud, Washington D.C., 2024 · Washington
- HHS Office of Inspector General, Healthcare Fraud Crackdown, Washin… · Virginia
- June Gibbs-Brown, Healthcare Fraud Enforcement, Washington DC, 1993 · Washington
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News