FORMER Australian Rabobank executive Paul Thompson has apologised in a New York court for his role in a scandal that manipulated the benchmark LIBOR interest rate.
Thompson, 50, from Perth, entered a guilty plea on Thursday to one count of conspiracy to commit wire and bank fraud.
He will be sentenced on November 9.
“I apologise to those who were harmed by my actions,” a tired-looking Thompson, dressed in a suit, told US District Court judge Jed Rakoff.
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READ NOWThompson is free on bail and will be allowed to fly back to Australia before returning to New York for his sentencing.
Thompson is the fourth individual to plead guilty in the matter: Paul Robson, Lee Stewart and Takayuki Yagami, former Rabobank traders, pleaded guilty to one count of conspiracy in connection with their roles in the scheme.
Another former Rabobank employee, Tetsuya Motomura, of Tokyo, has been charged and awaits trial.
“Is your mind clear today?” Judge Rakoff asked Thompson before he entered his guilty plea.
Thompson, who said he had been prescribed medication for depression but had not taken any for several days, replied: “Yes, your honour.”
Thompson was a derivatives trader who worked in Hong Kong and Singapore as Rabobank’s head of money market and derivatives trading for northeast Asia.
LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if they borrowed from other banks.
LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products.
“Trillions of dollars in derivative contracts, loans, consumer debt and other financial products are linked to LIBOR, but Thompson schemed to manipulate this important benchmark to advantage his bank’s own trading positions,” US Assistant Attorney-General Leslie Caldwell said.
“This case demonstrates that we will work with our partners around the world to bring to justice those whose crimes threaten our financial markets, wherever they reside.”
US authorities thanked the Australian Attorney-General’s Department, the Australian Federal Police and the Western Australia Police for their assistance.