Trader 'Cooperated' In Libor Probe, Hedge Fund Says

Aug 13 2012 | 1:23pm ET

The hedge fund trader at the center of the growing investigation into alleged manipulation of the London Interbank Offered Rate is cooperating with authorities.

Federal prosecutors are looking into Ryan Reich's three-and-a-half years at Barclays, during which time he allegedly sent e-mails seeking information about how the benchmark Libor was to be priced. Reich was fired by Barclays in 2010 and now works at hedge fund WCG Management.

In an e-mail to clients, WCG said that Reich "has cooperated" in the probe. The hedge fund also assured clients that it is not under investigation itself.

WCG wrote that it had spoken to Reich's attorney, who told them both that his client was cooperating and that he had not been asked about his time at WCG.

Barclays paid more than US$400 million to settle allegations that its employees colluded with people at other banks to manipulate Libor, which is set by a consortium of banks.

Reich worked on a Barclays desk trading interest-rate swaps on U.S. Treasuries and the U.S. and Canadian dollars. The information he allegedly sought could have been used to take profitable positions, another source told Reuters.

Prosecutors in Washington, D.C., have focused on Reich's former desk, where he worked from 2006 through 2010. The desk's head, Ritankar Pal, recently left Barclays. Prosecutors are still talking to people about plea deals and cooperation agreements, and are expected to decide whether to charge people by the end of this month or early next month.


In Depth

Firm Focus: Sustainable Insight Capital Bullish On ESG

Aug 12 2014 | 9:18am ET

Bruce Kahn spent over 15 years as a research scientist/consultant on environmental...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note