RBS 'suspends Europe rates trading head'

The Royal Bank of Scotland has suspended its head of rates trading for Europe and the Asia- Pacific region as part of its ongoing investigation into rate rigging, according to Bloomberg.

Jezri Mohideen was suspended on 12th October following reports that he instructed colleagues to lower the British lender's submission to the London interbank offered rate (LIBOR) in 2007, Boomberg reported.

The news service quoted unnamed sources who said Mohideen told colleagues in the UK, via Instant Messenger, to lower RBS's submission to yen LIBOR on one day in 2007.

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Mohideen has denied the accusation.

So far RBS has fired four traders for trying to rig rates and suspended three others as it continues its two-year investigation into attempts to fix inter-bank lending rates.

It is among several banks that are under investigation over attempts to rig LIBOR in order to either increase profits on derivative trades or to make themselves look healthier than they were during the financial crisis.

In June Barclays bank was fined £290 by regulators for its part in the rate fixing scandal.

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