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Citigroup took a $50 million loss after two traders accused of manipulating the Tokyo Interbank Offering Rate left the bank, according to reporters at the Financial Times (h/t Zerohedge).Other Citi sources suggested the losses were even greater than that amount, the reporters write.
It’s the latest development in the potentially explosive interbank offering rate scandal unfolding worldwide. Nine different investigative agencies in the US, Europe and Japan are now investigating whether employees at major financial institutions may have tried to illicitly influence interbank borrowing rates.
The Citi traders’ activities were uncovered by another Citi employee in London, who reported them. The traders’ positions then had to be wound down.
The reporters also write that a former Barclays trader is being investigated for attempting to manipulate the European Interbank Offering Rate (Euribor).