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The First Casualty Of Liborgate's Swiss Expansion: "Michael Zrihen No Longer Trading"

Submitted by Tyler Durden on 07/19/2012 08:53 -0400

In an exclusive report Zero Hedge yesterday presented the connection between the 16 BBA member banks, and something far more sinister: the sleepy, quiet (just as they want it) universe of Swiss hedge funds and private banks. One of our key focuses was on a gentleman named Michael Zrihen. We said: "So allegedly Zrihen, who now works in Geneva (keep a note of this), manipulated Libor at CA, and is now at Lombard Odier - "Geneva's oldest firm of private bankers and one of the largest in Switzerland and Europe." There is no news on whether Zrihen has been let go by Lombard Odier. Yet." We now have news. As of moments ago:

LOMBARD ODIER SAYS MICHAEL ZRIHEN `NO LONGER TRADING'
LOMBARD ODIER SAYS ZRIHEN JOINED THE FIRM IN DEC 2010
LOMBARD ODIER SAYS HAS NO ROLE IN EURIBOR, LIBOR SUBMISSIONS

As a reminder, this is just the tip of the Swiss Liebor rabbit hole. Many more hedge funds will be implicated.

And here is Reuters' take:

Lombard Odier Investment Managers, the wealth management arm of the Swiss private bank said on Thursday it was actively investigating press reports linking portfolio manager Mickaël Zrihen with the ongoing Libor probe.

On Wednesday, the Financial Times reported that Zrihen had been linked with a Barclays trader under scrutiny for the attempted manipulation of the region's benchmark interest rate during a period between 2005 and 2007 whilst he worked at French Bank Credit Agricole.

He is no longer trading pending the investigation.

Calls to Zrihen, who joined Lombard Odier in December 2010 as a member of the fixed income portfolio management team, were not picked up.

Lombard said they had not been contacted by regulators but have now reached out to them in order to learn more.

Lombard Odier, a private bank focused on wealth management for private and institutional clients, has never had any role in setting LIBOR or EURIBOR rates, it said in a statement.

It appears ZH is now "the press"

To summarize: before (as in 12 hours ago):

and After:

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Thu, 07/19/2012 - 08:55 | 2631298 zero19451945

Do you really think this guy gives a shit? He probably made millions already and is laughing all the way to the insolvent bank.

He sure as hell isn't going to jail!

Thu, 07/19/2012 - 08:57 | 2631309 Doubleguns

He works in a stricly advisory position now.

Advising the next tier of crooks.

Thu, 07/19/2012 - 09:33 | 2631493 metastar

Many more hedge funds will be implicated.

None will be imprisoned.

Thu, 07/19/2012 - 12:00 | 2631506 TruthInSunshine

Zrihen is terminated, bitchez.

They're trying to shut down Treadstone. They're trying to shut it all down.

The Rabbit Hole Runs Deep, Alice

Thu, 07/19/2012 - 09:43 | 2631534 fuu

It's called "The Mentor Program".

Thu, 07/19/2012 - 08:57 | 2631310 veyron

Wake me up when we see the quadrillion dollar scandal

Thu, 07/19/2012 - 08:58 | 2631314 GetZeeGold

He gets to attend Jon Corzine's birthday party. It's so cool he's almost jealous of himself.

Thu, 07/19/2012 - 09:00 | 2631332 LULZBank

He sure as hell isn't going to jail!

You only go to jail if you have a boob job and a liposuction with the stolen money.

Thu, 07/19/2012 - 08:57 | 2631307 firstdivision

WTF is going on with the Italian 10Y? Is Mr. Zrihen fixing it?

Thu, 07/19/2012 - 08:57 | 2631316 LawsofPhysics

Stopped trading, retiring to private island plantation with tons of physical. Oh wait...

Thu, 07/19/2012 - 08:59 | 2631323 LULZBank

+ Trillions Tylers!!!

Thu, 07/19/2012 - 09:28 | 2631475 Comay Mierda

fuck yea

Thu, 07/19/2012 - 08:59 | 2631326 CrimsonAvenger

If he had been happy just getting a boob job and pursuing a modeling career, we wouldn't be in this mess.

Thu, 07/19/2012 - 09:04 | 2631348 sudzee

Oh not us:

http://www.cnbc.com/id/48240456

Thu, 07/19/2012 - 09:07 | 2631361 Turin Turambar

The Peter Principle tells me that this guy is just now beginning to climb in his career. His next job will be another step up.

Thu, 07/19/2012 - 09:14 | 2631410 CrimsonAvenger

Ladies and gentlemen, I present our new Treasury Secretary.

Thu, 07/19/2012 - 09:12 | 2631402 john_connor

Zrihen needed help building his business; he didn't do it alone.

Thu, 07/19/2012 - 10:15 | 2631679 StychoKiller

I see what you did there...LOL

Thu, 07/19/2012 - 09:19 | 2631443 falak pema

falling like flies; its an epidemic! The Jerome Kerviel syndrome!

Thu, 07/19/2012 - 09:44 | 2631539 SheepDog-One

Zrihen....wasnt that a James Bond villain?

Thu, 07/19/2012 - 09:48 | 2631555 Rainman

It's always the smaller fish that get eaten first...but sooner or later they turn into rats angling for lighter sentences.

Thu, 07/19/2012 - 09:53 | 2631571 swiss chick

It appears ZH is now "the press"

Exactly what I was thinking - someone at Lombard Odier is reading ZH!!!!

Thu, 07/19/2012 - 10:04 | 2631617 Pinky

Years ago it occurred to me that the Swiss Authorities (whomever) were almost NEVER in the news. Maybe I'm wrong, and just lead a sheltered life. But nnow whenever the Swiss Authorities come into my head I see the trollish bankers from the Harry Potter movies. I'm sorry, that's all I've got. My brain had to do SOMETHING to fill in the missing data.

Thu, 07/19/2012 - 10:08 | 2631640 PeeramidIdeologies

What are the full implications of this Libor incident? Uncovering this scandal should cause a lot or revaluations or no? Dispite the scale and depth of the issue it seems to have had little effect on the market...

Thu, 07/19/2012 - 10:15 | 2631680 spekulatn