UPDATE 1-Ex-Rabobank trader pleads not guilty in U.S. case over Libor
(Adds background, details on scandal)
By Nate Raymond
NEW YORK, March 20 (Reuters) - A former trader at Dutch lender Rabobank pleaded not guilty on Friday to U.S. charges that he engaged in a scheme to manipulate Libor, the benchmark interest rate at the center of global investigations into misconduct at various banks.
Anthony Allen, a British citizen who was Rabobank's former global head of liquidity and finance, entered his plea at a public hearing in Manhattan federal court.
He is the first defendant charged by the U.S. Department of Justice to waive extradition to fight Libor-related charges.
Libor, or the London Interbank Offered Rate, is a key short-term rate banks charge each other for loans. The benchmark rate underpins hundreds of trillions of dollars of financial products from mortgages to credit card loans worldwide.
U.S. and European authorities have been probing whether banks attempted to manipulate the rate to benefit their own trading positions.
The probe has resulted in over $6 billion in settlements with banks and brokerages and several people being criminally charged, including 11 in the United States.
Allen was indicted in October for conspiracy and wire fraud, becoming one of six former Rabobank employees to be charged in the United States as part of the investigation. Continuación...