Citi engaged in the manipulation of US dollar Libor, despite being aware that US regulator, the Commodity Futures Trading Commission (CFTC), was investigating the firm over Libor rigging.
According to its findings, the CFTC also found that in 2009 senior managers at Citi in Japan talked openly with a trader about his manipulation of Yen Libor at a company he worked at previously.
The CFTC said: “Even though they were aware of the CFTC’s investigation, the senior managers did not notify the legal or compliance departments about the Senior Yen Trader’s admissions.”
The US regulator has ordered Citibank in North America and Japan to pay $175 million to settle the charges of Libor manipulation.
The director of enforcement at the US regulator, Aitan Goelman, concluded it “remains steadfast in its commitment to ensure the integrity of global benchmark.
“As evident by today’s actions, the CFTC’s vigilance includes holding a financial institution, like Citi, responsible each time it acts to undermine a benchmark for its personal profit or benefit.”
The CFTC has now imposed fines totalling over $2.84 billion for Libor rigging and other benchmark manipulations.
The FBI, Department of Justice, the UK’S Financial Conduct Authority and Japan’s Financial Services Agency were also involved in the investigation against Citi.