Traders ‘competed to win the Libor cup’

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The High Court has heard how bankers from Lloyds Banking Group and Royal Bank of Scotland competed against each other to earn the title “Libor legend”.

The Sunday Times reports the claims have been made as part of a court case against RBS by the developer Property Alliance Group, which is claiming it was missold interest rate swap products.

The allegations include that bankers would hold contests to see who could guess daily Libor most accurately.

The winner would receive a cup engraved with their name, paid for by the runner-up.

The banker who came last would pay for dinner at Mayfair restaurant Langan’s, while the 10 per cent tip would be picked up the banker who finished second to last.

Property Alliance Group claims senior RBS staff were aware Libor was being manipulated, but still used the benchmark to price the swaps. The developer claims on this basis it was missold.

RBS rejects the allegations and says it will “continue vigorously to defend this claim”.