News

Barclays discharges trader, executive in unraveling Libor scandal

Barclays recently notified the Financial Industry Regulatory Authority in a regulatory filing that Ritankar “Ronti” Pal, the former head of U.S. interest rates trading and a managing director at the bank, was “discharged” due to his involvement in the Libor scandal.

The bank said on Aug. 29 that it had a “loss of confidence” in Pal’s capabilities as a manager because he failed “to properly supervise individuals on his team,” Reuters reports.

At least four former Barclays traders who worked under Pal’s supervision have been scrutinized by American regulators and prosecutors in the ongoing investigation into manipulation of the London interbank offered rate, commonly known as Libor.

Don Kun Lee, a New York-based derivatives trader for Barclays who reported to Pal, was terminated in July for allegedly engaging “in communications involving inappropriate requests relating to Libor,” according to Reuters.

Barclays discharged Pal following the bank’s $453 million settlement with British and U.K. authorities for its participation in the scandal. The bank admitted in 2008 that it had been submitting artificially low rates in an attempt to manipulate Libor.

Additionally, Barclays said that it “undertook a thorough and robust internal disciplinary process promptly following the regulatory review which was completed in late July.” The filing revealed that Pal said he “engaged in communication involving an inappropriate request relating to Libor,” Reuters reports.

Barclays’ settlement is just one of several that are expected to follow in the aftermath of the Libor scandal. U.S. and U.K. authorities are currently investigating several other banks that are also believed to have played a role in the scandal.

Comments are closed.