The scandal around the manipulation over the London Interbank Offered rate – or Libor – has heated up – after UBS revealed that one of its employees has left the bank.
UBS confirmed to the IBTimes that the bank’s head of swap trading, Jay V. Merchant, has left the bank although they would not confirm whether it is in relation to any of the multiple Libor investigations being carried out across the globe.
However, a number of media reports have cited that Merchant as being under investigation for the time he was at his ex-employer – Barclays – which was eventually fined a record £290m for Libor rigging.
According to a number of media reports citing industry records, "Merchant began working for Barclays in 1998 and remained with the British bank until the end of 2009, after which he to UBS in Stamford, Connecticut."
Reports also say that "Records maintained by UK securities regulators also show that Merchant was registered as working in Britain from 2001 through parts of 2007.”
The news of Merchant's departure follows a Reuters report that another former Barclays trader, Ryan Reich, "has cooperated with the federal criminal probe into the alleged rigging of international benchmark interest rates. Merchant was one of Reich's supervising traders at Barclays."
Written and Presented by Lianna Brinded.