Libor Investigator McGonagle Named CFTC Market Oversight Head
Vincent McGonagle, the U.S. Commodity Futures Trading Commission official who opened probes of interest-rate manipulation by banks including UBS AG and Barclays Plc (BARC), was named to head the CFTC market oversight unit.
McGonagle, who has been with the agency for nearly 16 years, will take the helm next month of a division responsible for monitoring trading platforms, data repositories and new products to ensure they aren’t susceptible to manipulation, CFTC Chairman Gary Gensler said in a statement today.
“Liquid, fair and financially secure U.S. derivatives markets are at the core of our mission, and I look forward to being more directly involved in the regulatory oversight of these markets,” McGonagle, 49, said in the statement.
In 2008, he opened an investigation into the London interbank offered rate that has led to settlements with UBS, Barclays and Royal Bank of Scotland Group Plc. The three banks have paid a total of about $2.5 billion in fines for colluding to rig benchmark interest rates for profit or to mask their true cost of borrowing.
The CFTC oversees futures and swaps markets tied to interest rates, default risk and commodities including oil and natural gas. The agency is implementing rules under the 2010 Dodd-Frank Act to boost swaps oversight after unregulated trades were faulted for fueling the 2008 credit crisis.
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