FCA bans ex-Rabobank trader over Libor rigging

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The FCA has banned a former Rabobank trader from working in financial services after he was convicted for manipulating the bank’s Libor submissions.

Lee Stewart worked as a senior derivatives trader at the London desk of Dutch financial services firm Rabobank between 1993 and 2009.

In March this year Stewart pleaded guilty to one count of conspiracy to commit wire and bank fraud. He admitted to the Southern District of New York Court that from May 2006 to early 2011 he conspired with others at Rabobank to manipulate the US dollar Libor benchmark interest rate.

Stewart is due to be sentenced in June 2017.

FCA acting director of enforcement and market oversight Georgina Philippou says: “Stewart was an experienced trader at Rabobank who, through his guilty plea, has admitted to participating in a criminal conspiracy to manipulate Libor over a prolonged period of time.

“His behaviour was inexcusable and very serious. This ban further reinforces our expectation that individuals and firms take responsibility for ensuring market integrity and reminds them of the consequences if they fall short of our standards.”

The move follows a ban imposed by the FCA on another former Rabobank trader, Paul Robson, in March. Robson pleaded guilty last year to manipulating the bank’s Yen Libor submissions.

Rabobank itself was fined £105m by the FCA for “serious, prolonged and widespread misconduct” relating to Libor rigging.