RBS 'suspends trader for Singapore dollar rate rigging'

5 October 2012

A senior Royal Bank of Scotland (RBS) trader has been suspended after it emerged he had attempted to manipulate the Singapore dollar swap offer rate, it has emerged.

Two people with knowledge of the matter have told Bloomberg that Chong Wen Kuang was placed on leave earlier this year for trying to rig the interest rate to benefit his own dealings.

This has raised speculation in the markets that professionals in the industry may have attempted to illegally influence more than just Libor - a scandal that has resulted in a number of major financiers being investigated for malpractice.

Indeed, during the summer, Barclays was hit with a fine of around $450 million for its involvement in this fiasco.

One of the insiders indicated that Mr Kuang is the first RBS staff member to be disciplined for another type of manipulation other than Libor.

However, spokesman for the bank Michael Strachan refused to comment specifically on Mr Kuang's case, saying: "Our investigations into submissions, communications and procedures relating to the setting of Libor and other interest rates are ongoing."

By Gary Cooper

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