The Straits Times
Published on Dec 12, 2012

Britain steps up Libor rate-rigging probe, makes first arrests


LONDON (AFP) - Britain has stepped up its probe into rigging of the Libor interbank lending rate, making its first arrests in a scandal that has shaken faith in London's role at the heart of the global financial system.

Britain's Serious Fraud Office (SFO), which is responsible for investigating and prosecuting complex fraud cases, said three people had been held for questioning on Tuesday concerning manipulation of the rate used as a reference in lending across the world.

"Three men, aged 33, 41 and 47, have been arrested and taken to a London police station for interview in connection with the investigation into the manipulation of Libor," said the SFO in a statement.

The Financial Times on Wednesday named the men as Tom Hayes, a former trader who has worked in London and Tokyo and Terry Farr and Jim Gilmour, two employees of London-based interdealer broker RP Martin.