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UPDATE 1-Former Rabobank trader pleads guilty to Libor manipulation

(Adds allegations, comments, background, other settlements, NEW YORK dateline)

WASHINGTON/NEW YORK, June 10 (Reuters) - A former Rabobank NV trader on Tuesday pleaded guilty for his role in manipulating the Yen Libor benchmark interest rate, the U.S. Department of Justice said.

Takayuki Yagami, who specialized in Japanese yen derivatives, pleaded guilty to one count of conspiring to commit wire fraud and bank fraud before U.S. District Judge Jed Rakoff in Manhattan, the Justice Department said.

The government said Yagami admitted to conspiring with three other previously charged Rabobank traders to submit false, fraudulent Yen Libor submissions to benefit their own trading positions.

"This was the ultimate inside job," Leslie Caldwell, who heads the Justice Department's criminal division, said in a statement. "Traders illegally influenced the very interest rate on which their trades were based, using fraud to gain an unfair advantage."

A lawyer for Yagami did not immediately respond to requests for comment.

Last October, Rabobank agreed to pay $1 billion to resolve U.S. and European probes into alleged Libor manipulation.

This included a $325 million accord with the Justice Department, in which Rabobank entered into a deferred prosecution agreement.

Rabobank was the fifth company to settle with regulators worldwide over Libor manipulation. Others include Britain's Barclays Plc, ICAP Plc and Royal Bank of Scotland Group Plc, as well as Switzerland's UBS AG .

Nine people have been charged by the Justice Department in connection with the probe, Caldwell said.

(Reporting by Diane Bartz and Aruna Viswanatha in Washington, D.C.; and Joseph Ax, Nate Raymond and Jonathan Stempel in New York; Editing by Doina Chiacu and Tom Brown)