Former trader charged with rate manipulation arrested in Australia

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A former trader charged in the U.S. over an interest rate manipulation scheme has been arrested in Australia.

Former Rabobank Groep trader Paul Thompson was taken into custody in Perth after being indicted in New York over a scheme to manipulate benchmark interest rates, Bloomberg has reported.

Thompson was among seven Rabobank traders indicted in the U.S. for allegedly conspiring to manipulate the London interbank offered rate, or Libor. He now faces extradition to the United States, Bloomberg said.

Rabobank has already agreed to pay more than $1bn to resolve regulators' claims over Libor manipulation, including a $325m penalty from the U.S. Justice Department, the Bloomberg report said.