Brevan Howard Asset Management, a $33 billion hedge fund firm, asked Royal Bank of Scotland to change the London interbank offered rate five years ago, according to a trader suing the lender for wrongful dismissal.
"Brevan Howard telephoned on 20 August 2007 to ask the defendant to change the LIBOR rate," Tan Chi Min, a trader fired by the bank for allegedly trying to manipulate the rate, said in court papers filed March 23 with the Singapore High Court. The bank "received this request without objection," according to the document.
The hedge fund isn't a party in the suit and isn't being sued for wrongdoing.
Scott Nygaard, listed as head of short-term markets finance on an RBS website, knew about the call from Brevan Howard, Mr. Tan said in his filing. No further facts or particulars supporting Mr. Tan´s allegation were given in the court papers.
Regulators around the globe are probing whether banks colluded to manipulate rates including LIBOR, the basis for $360 trillion of securities worldwide.
RBS has "substantial and credible" defenses to claims it tried to rig interest rates, the Edinburgh-based bank said in its annual report March 9.