ZURICH, June 27 A trader allegedly connected to
a global rate-rigging scandal has left hedge fund Brevan Howard,
the company said on Thursday.
Chris Cecere, who joined Brevan Howard's Geneva office in
2010 from Citigroup Inc., has left the hedge fund for
undisclosed personal reasons, spokesman Max Hilton said.
Japanese regulators in 2011 found two Citigroup employees
were involved in attempted manipulation of the yen-denominated
Libor rate. It did not identify the traders but sources familiar
with the situation named one of them as Cecere.
In an interview with Reuters last year, Cecere said he left
Citigroup voluntarily with full bonus and that he had not been
questioned by regulators. On Thursday, Cecere couldn't
immediately be reached by Reuters for comment.
The probe into how traders rigged crucial benchmark rates
such as Libor - the London interbank offered rate, against which
trillions of dollars of loans are priced - has sparked public
and political outrage and laid bare the failings of regulators
and bank bosses.
To date, British and U.S. regulators have fined three banks
including UBS a total of $2.6 billion and prosecutors
and police have charged two men, including former UBS and
Citigroup trader Tom Hayes.
Hayes has been charged by British prosecutors with eight
counts of conspiracy to defraud, laying the groundwork for what
could be the first Libor trial.
The agency that sets rules for global banks, the Financial
Stability Board, said it would establish a task force to look at
reform of Libor following the scandal.
Brevan Howard, one of the largest hedge funds in the world,
has been left nursing big losses across some of its portfolios
this month amid a sell-off in bonds and currencies.
A number of traders, including the lead manager of its
currencies fund, Luke Ding, have left the firm because of poor
performance, a source with knowledge of the matter said earlier
this month. Brevan employs around 80 traders, mainly from its
London and Geneva offices.