An article published in the Financial Times has alleged that FTSE 250-listed broker Tullett Prebon 'has been drawn into the LIBOR scandal' claiming that an individual at the inter-dealer broker was 'implicated in conversations about rigging the yen LIBOR rate'.
An unnamed spokesperson from Tullet Prebon was quoted in the article saying the company had not been informed of a probe by any regulators in relation to LIBOR (London Interbank Offered Rate).
"Tullett Prebon has never been informed by the FSA [Financial Services Authority] or any other regulatory authority that Tullett Prebon or any of its brokers are under investigation in relation to LIBOR," the spokesperson was quoted as saying.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company's designated global spokeswoman reconfirmed this statement when ShareCast contacted her on Friday.
According to the Financial Times, citing "people familiar with the LIBOR probes", the broker implicated in conversations about rigging the yen LIBOR rate, was referred to anonymously in documents published by the FSA in connection with rate-rigging settlements with both Royal Bank of Scotland and UBS.
Last week, RBS paid £390m to regulators in the UK and US, while UBS paid $1.5bn in December.
In the UBS settlement, the FSA wrote that former UBS trader Tom Hayes, identified as "Trader A", made 39 LIBOR-related requests in July 2009 of an unnamed broker, identified as "Broker F of Broker Firm C".
The Financial Times alleged that two people familiar with the LIBOR probe have said Tullett was Broker Firm C.
Tullett Prebon's share price was down 6.79% to 280.20p at 12:35.
MF
-
British Airways revamps Avios scheme bringing down flight prices to £1With the new Avios part-payments scheme you can now bag a British Airways flight for as little as £1
-
RBS to close a fifth of branchesRoyal Bank of Scotland plans to shut 18 branches across Scotland, resulting in the loss of 105 jobs. We have the full list of closures.
