Barclays coughs up over 'mini puke' deal

Gold Bar And Coins

Sick to the stomach.

The day after Barclays was lashed with a record fine for manipulating interest rates, a gold trader at the bank cheated a client and artificially suppressed the price of one of the world’s most widely traded metals.

Bloomberg News reports that on the evening of June 27, 2012 - the same day U.S. and U.K. regulators fined Barclays $488m for manipulating the London interbank offered rate, or Libor - Daniel Plunkett e-mailed colleagues to say he hoped for a 'mini puke to 1,558' the next afternoon, meaning a drop in the gold price.

Plunkett got that by manipulating the fixing, avoiding a $3.9m payment to a client, according to the FCA.

The U.K. Financial Conduct Authority fined the bank $43.9m, Plunkett $161,335, and banned the former trader from the industry. The incident is a blow to Barclays as Chief Executive Officer Antony Jenkins attempts to rehabilitate the lender’s reputation. Jenkins took over after Bob Diamond left in the wake of the Libor fine.

To access the complete Bloomberg article hit the link below:

Barclays Trader's 'Mini Puke' Scammed Gold Price to Cheat Client

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