The Financial Conduct Authority (FCA) has
banned a former Royal Bank of Scotland (RBS) JPY and CHF Libor submitter from
basically ever working in the City again.
Paul White has been barred from performing
any function in relation to any regulated financial activity and publicly
censured. The FCA says that, “were it not for Mr White’s serious financial
hardship”, it would also have fined him £250,000.
Mark Steward, director of enforcement and market
oversight at the FCA, says: “As a Libor submitter Mr White had an obligation to
ensure the submissions he made were proper ones. By allowing his submissions to
be set, in effect, by those with collateral financial interests in the outcome,
Mr White recklessly disregarded the risk – the obvious risk – that his Libor submission
might corrupt Libor’s integrity. This ban should reinforce the message that
working in financial markets entails obligations and responsibilities and that
serious failures will result in substantial penalties including fines and
According to the FCA, White received 68
documented communications from RBS JPY and CHF swaps derivatives traders asking
him to make submissions that suited their books. He also took verbal instructions
from colleagues, as well as requests from brokers on behalf of an external JPY
The FCA says this is the fourth public
action taken against a trader for manipulating Libor submissions.