Paul Thompson, Manipulating LIBOR, New York 2016

Ex-Rabobank Trader Pleads Guilty to Manipulating LIBOR

A former Coöperatieve Centrale Raiffeisen-Boerenleebank B.A. (Rabobank) derivatives trader, Paul Thompson, 50, of Dalkeith, Western Australia, pleaded guilty today to conspiracy to commit wire fraud and bank fraud for his role in a scheme to manipulate the London InterBank Offered Rate (LIBOR) to Rabobank's advantage.

Thompson pleaded guilty before U.S. District Judge Jed S. Rakoff of the Southern District of New York, who set sentencing for November 9, 2016.

'Confidence in the integrity of our financial markets is critical to the stability of the U.S. economy,' said Assistant Attorney General Leslie R. Caldwell. 'Trillions of dollars in derivative contracts, loans, consumer debt and other financial products are linked to LIBOR, but Thompson schemed to manipulate this important benchmark to advantage his bank's own trading positions.'

Thompson traded derivative products tied to the USD and Japanese Yen LIBOR rates. In an effort to increase the profitability of his derivative positions, Thompson entered into a scheme with several other Rabobank employees to influence the rate to Rabobank's advantage, he admitted.

Thompson is the fourth individual to plead guilty in this matter: Paul Robson, Lee Stewart and Takayuki Yagami, former Rabobank traders, pleaded guilty to one count of conspiracy in connection with their roles in the scheme. Another former Rabobank employee, Tetsuya Motomura, of Tokyo, has been charged and awaits trial.

LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if they borrowed from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products.

Source: https://www.justice.gov/archives/opa/pr/former-rabobank-derivatives-trader-pleads-guilty-scheme-manipulate-libor-benchmark