LONDON—Former bank trader Tom Hayes accused top Citigroup Inc.
executives of being involved in efforts to manipulate global
benchmark rates and then engineering a coverup, a London court
heard Monday.
Brian McCappin, the chief executive of Citigroup's global
markets business in Japan, "would talk to the cash desk in Tokyo
and ask them to move Tibors [Tokyo interbank offered
rate],"according to an email sent by Mr. Hayes to a contact at
Barclays PLC on Sept. 7, 2010, the day after Mr. Hayes was
dismissed from the U.S. bank.
A Citigroup spokesman declined to comment on the trial or the
allegations against Mr. McCappin.
Another senior colleague at Citigroup was copied on an email
that contributed to Mr. Hayes's firing on allegations of attempted
manipulation of the Yen London interbank offered rate, or Yen
Libor, and the Tokyo interbank offered rate, or Tibor, Mr. Hayes
told the Barclays contact in the email message.
"My superior was cc'd on the email to my junior when I mention
talking to them about why they moved the fix," Mr. Hayes said,
expressing dismay about losing his job after an internal
investigation, "...am still in shock."
In that December 2009 email to the junior colleague, seen by the
jury earlier Monday, Mr. Hayes had asked the colleague to find out
from rate submitters in London why their rate had changed recently
and to get information about future moves so that "if we know ahead
of time we can position and scalp the market."
Mr. Hayes is on trial for eight counts of fraud related to
alleged manipulation of Libor and has said he isn't guilty. Mr.
McCappin hasn't been accused of any wrongdoing by authorities.
The court also heard how Mr. Hayes in a June 2013 interview with
British prosecutors said that he was instructed by Mr. McCappin to
say that he had only asked a junior colleague to share information
with rate submitters in London rather than request that they adjust
their submissions.
During the internal investigation, Mr. Hayes wasn't suspended
and was discouraged from seeking legal advice, Mr. Hayes told the
prosecutors. While Mr. Hayes was dismissed, a senior colleague was
allowed to resign, and "Brian's involvement was covered up," Mr.
Hayes said in the interview.
Write to Margot Patrick at margot.patrick@wsj.com
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