Bank of Tokyo-Mitsubishi UFJ has told two of its traders in London to stand by at home as British authorities investigate their suspected involvement in London interbank offered rate manipulation, it was learned Tuesday.
The two derivatives traders were previously working at Rabobank of the Netherlands, which is also being probed over the spreading LIBOR scandal, informed sources said.
They were alleged involved in LIBOR manipulation while at the Dutch financial group, according to the sources. LIBOR serves as a benchmark for short-term interest rates worldwide.
No wrongdoing by the two traders has been confirmed since they moved to BTMU, a core unit of Mitsubishi UFJ Financial Group Inc., according to the sources.
It has been found that British financial group Barclays repeatedly made false reports on interest rate data to the British Bankers’ Association in an attempt to have LIBOR set at levels beneficial to the group. LIBOR is set by the BBA based on reports made by financial institutions every business day.
Barclays has agreed to pay fines totaling $450 million. Top executives, including Chief Executive Officer Bob Diamond, have resigned to take responsibility for the misconduct.