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.”
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

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!