OK, first of all it is impossible for individual traders to manipulate the LIBOR.
Here is why:
The London Inter Banking Offered Rate is calculated daily as follows: 16 major banks call in every morning to Thomson Reuters Corporation to state the rates they will charge other banks who want to do interbanking borrowing for the next 24 hours.
The highest 4 and the lowest 4 of those prices quoted are dismissed and the median interest is calculated from the mid-price remaining 8. This means that if even one bank comes up with a deviating number it will be dismissed in order to prevent that number from having any significant influence on the median rate. That means that 8 BANKS are dismissed everyday from the price calculation to prevent manipulation. So even if 8 banks partake in price manipulation it wont work. The only way LIBOR can be manipulated is if the top guys get together and agree on where they want the interest rate to go. Only if every bank is involved will the manipulation succeed. That is what the LIBOR rigging scandal is all about. Even Matt Taibbi finds it hard to go there but this is what this is about!
So when you hear about an individual trader being charged with LIBOR rigging you are being told a coverup story.
What is interesting is that this time a Kiwi trader by the name of Darrell Read who is apparently a yen derivatives broker has been charged with LIBOR rigging. This guy sold yen derivatives and single-handedly manipulated the most important interest rate which is set daily by 16 of the biggest banks?
What is interesting is that the official indictment only charges him with wire fraud which is a much wider allegation and can be done by individual traders and not with LIBOR fraud. me thinks that is what is really going on. They are charging with known bad apples good for the chop with wire fraud and tell the MSM who doesn’t know shit from shinola about finances it has to do with the LIBOR.
I’d love to hear more about this as well as what his connections to that other Kiwi currency derivatives trader John Key are!