By Sam Holmes
SINGAPORE--An ex-Royal Bank of Scotland PLC (RBS) trader in
Singapore fired last year for allegedly attempting to influence the
setting of key benchmark interest rates claims his former employer
omitted key information about its rate-setting practices in records
pertaining to his disciplinary hearings.
Tan Chi Min, a Malaysian national who was previously head of
delta trading with RBS's global banking and markets division in
Singapore, was fired in November last year after RBS claimed he
improperly influenced the setting of benchmark interbank rates,
documents filed with the Singapore High Court show.
Mr. Tan is now seeking 1.95 million Singapore dollars (US$1.57
million) in bonuses and 3.3 million shares he asserts he is
entitled to as a result of the dismissal.
Mr. Tan has argued throughout the case, which commenced late
last year, that is common practice for senior bank employees to
make requests to RBS's rate setters about appropriate rates.
In the most recent court documents filed last week, Mr. Tan said
the minutes of his disciplinary hearing held in September last year
omitted points of discussion about various examples of attempts to
influence rate setters.
In particular, he claims the minutes made no mention of
discussions pertaining to one client's requests for a certain
fixing of the London Interbank Offered Rate, or Libor, nor to
various written and oral communications between managers and staff
conveying requests for such inputs be either "high" or "low."
Regulators in countries including the U.S. and Japan are probing
various financial institutions over alleged manipulation of key
benchmark interbank rates, notably Libor.
The probes have prompted several banks to withdraw from panels
that set rates. For instance, Barclays PLC (BCS), is set to
withdraw from a panel that sets base interbank interest rates in
the United Arab Emirates, according to people familiar with the
matter.
In Singapore, RBS last month stopped submitting data to the
city-state's interbank lending panel.
Mr. Tan also asserts RBS, in terminating his employment last
year, didn't provide particulars about his alleged attempts to
influence its rate setters.
Mr. Tan's role at RBS included providing the bank's rate setters
with input in relation to various short-term interbank rates for
submission to various interest-rate fixing bodies, such as the
British Bankers' Association, which sets the Libor rate.
RBS in its defense earlier this year said Tan sought to
improperly influence the bank's rate setters between 2007 and 2011
"by communicating requests to have the defendant's submitted Libor
rates set at particular levels" in order to profit his own book and
the bank and to maximize profit generally.
An RBS spokeswoman declined to comment.
Write to Sam Holmes at samuel.holmes@dowjones.com