Citigroup Inc. promoted an executive who Tom Hayes, a former colleague who is now a convicted felon, has repeatedly said was aware of Libor manipulation, according to two people with knowledge of the situation.
Brian McCappin, who once ran Citigroup’s Japanese investment bank, was named co-head of institutional sales for the New York-based bank’s foreign exchange business in September, said one of the people, who declined to be identified as details of his appointment haven’t been made public.
Ex-Citigroup and UBS Group AG derivatives trader Hayes, who was sentenced to 14 years in jail for conspiracy to rig yen Libor in August, testified during his trial that McCappin knew about his attempts to move the London interbank offered rate. McCappin, who was chief executive officer of Citigroup’s Japanese investment bank at the time, hasn’t been accused of wrongdoing by prosecutors.
Citigroup, which fired Hayes following an internal review in 2010, said it stood by McCappin.