Wednesday, 24 August 2016
Last updated 18 hours ago
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.