Signage is seen outside of the Commodity Futures Trading Commission. REUTERS/Andrew Kelly

U.S. regulator awards whistleblower $200m record payout over benchmark rigging case

WASHINGTON, Oct 21 (Reuters) – A U.S. regulator on Thursday doled out a record reward of almost $200 million to a whistleblower who supplied data for a case involving the rigging of essential monetary benchmarks, in response to the company and a regulation agency concerned within the award.

The U.S. Commodity Futures Buying and selling Fee (CFTC)introduced the award in an announcement on Thursday, however didn’t disclose the recipient or particulars in regards to the case or the exact quantity.

Regulation agency Kirby McInerney LLP stated in an announcement its consumer scored the record bounty after offering intensive data and paperwork in 2012 that “catalyzed” investigations by the CFTC and a overseas regulator into benchmark manipulation.

An legal professional for Kirby didn’t reply to requests for additional remark or present additional particulars.

Over the previous decade, authorities globally have levied multibillion-dollar fines and pursued prison expenses towards banks and merchants for banding collectively to rig international benchmarks, most notoriously the London Interbank Provided Charge (LIBOR).

U.S. lawmakers not too long ago handed laws to maintain the CFTC’s whistleblower program afloat. The Wall Road Journal reported in Could that the company’s whistleblower program was in danger attributable to a big anticipated payout to a former Deutsche Financial institution AG govt associated to its $2.5 billion Libor settlement.

A spokesperson for the CFTC declined to remark, citing company coverage. A spokesman for Deutsche Financial institution didn’t reply instantly to request for remark.

The quantity, the biggest ever for any authorities whistleblower program, was “mind-blowing”, Erika Kelton, an legal professional with Phillips & Cohen LLP who has represented a number of whistleblowers previously, stated in an announcement.

Reporting by Chris Prentice; Enhancing by Sam Holmes

Our Requirements: The Thomson Reuters Trust Principles.

Source link