Tom Hayes, the former star trader on trial on alleged Libor-rigging charges, promised fees to brokers using so-called 'wash' trades and enlisted the help of other major banks to execute them, according to evidence presented in a London court on Friday.
Reuters reports that in exchange for their help in allegedly assisting to distort benchmark interest rates, Hayes promised to reward brokers by using 'wash' trades, where banks make fake trades to pay brokers through commissions, the Southwark Crown Court heard.
'I will do a humongous trade with you ... $50,000 trade. I need you to keep it low ... I will pay you $50,000, $100,000, whatever you want. If you can just call in some favours ... if you've got a mate who will do a flat switch', Hayes told one broker in September 2008.
Brokers did not contribute to the Libor-setting process but regulators have called into question the role of individual brokers as conduits to aid manipulation by traders working at investment banks.
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