Swaps Probe Finds Banks Manipulated Rate at Expense of Retirees

Swaps Probe Finds Banks Manipulated Rate at Expense of Retirees

Scott Eells/Bloomberg

Recorded telephone calls and e-mails reviewed by the Commodity Futures Trading Commission show that traders at Wall Street banks instructed ICAP Plc brokers in Jersey City, New Jersey, to buy or sell as many interest-rate swaps as necessary to move the benchmark rate, known as ISDAfix, to a predetermined level, according to a person with knowledge of the matter.