British Official Got Rate-Rigging Emails

An official with the Bank of England received emails regarding the rigging of an interest rate that sets $350 trillion worth of financial derivatives, according to evidence presented Wednesday in a London court. Martin Mallett, a former chief currencies dealer in the BoE, was blind-copied on emails from traders who sent daily suggestions of where banks should set the London interbank offered rate, or LIBOR. The traders allegedly did so at the behest of then-UBS trader Tom Hayes. A British prosecutor alleges UBS gave kickbacks to traders for their assistance in rigging the LIBOR, which banks profited from by manipulating. Hayes has pleaded not guilty and it’s unclear why Mallett, who was fired for “serious misconduct,” received the emails.