Financial Times quotes Phillips & Cohen partner Erika Kelton about the significance and implications of the CFTC’s recent record $200 million whistleblower award.
The tip from the Deutsche Bank whistleblower led to a record $2.5bn in fines in the US and the UK to settle allegations that it manipulated the Libor benchmark rate, an interbank borrowing rate.
For advocates, the scale of the penalty underscores the benefits of rewarding whistleblowers with a cut of the fines.
“In this case, it is quite possible, even likely, that the CFTC never would have recovered what it did in that underlying action,” said Erika Kelton, a whistleblower lawyer at Phillips & Cohen, on the $200m award, which accounts for approximately two-thirds of all whistleblower rewards disbursed by the derivatives regulator.
Read the entire article, “Will record $200m payout tempt a new army of Wall St whistleblowers?” on the Financial Times’ website.