Brevan Howard Sought LIBOR Rate Change Says Ex-RBS Trader

Brevan Howard is the fund co-founded by Alan Howard, ex-head of proprietary trading at Credit Suisse First Boston, and Jean-Philippe Blochet in 2002. The fund ranked fifth in Institutional Investor’s Hedge Fund 100 in 2011 by employing a strategy focused on what it calls “asymmetrical outcomes” – philosophy it uses on all of its investments, from interest rates to currency, equities to commodity price movements. The fund focuses on making risk-averse investments based on macro events – but some risks, you just can’t prepare for. In this case, the issue, allegedly, is that the hedge fund asked the Royal Bank of Scotland PLC (RBS) to change the Libor rate, or at least that is what a former trader for RBS said in court documents filed as part of a wrongful dismissal suit reports Reuters.”Tan Chi Min, who was head of delta trading for RBS and based in Singapore, said in papers in a wrongful dismissal case that the fund telephoned the bank on August 20, 2007 and asked if they could change the bank’s submission.” RBS said in March that several of its staff were being investigated as to whether they tried to influence LIBOR lending rates. The fund is not named in the suit nor is it accused of any wrongdoing. 

Alan Howard

Tan filed suit against RBS after being fired in December over allegations that he tried to improperly influence RBS’s LIBOR rates from 2007 to 2011. In the suit, Tan alleges that “it was in fact common practice among senior RBS employees to make requests to the bank’s rate setters as to the appropriate Libor rate.” RBS filed a formal response with the court in January, in which it explained that TAn had been fired for gross misconduct.
According to Reuters, “In the court papers, the bank said Tan had sought to improperly influence RBS’s rate setters by communicating requests to have their Libor submissions set at particular levels in order to maximise his or the bank’s trading book profits.” Tan entered a response with the court in February in which he claimed “RBS was attempting to make a scapegoat of individual employees to deflect attention from the bank in relation to regulatory inquiries taking place into alleged manipulation of the LIBOR rate.”

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!