Former City trader Tom Hayes given 14-year sentence for Libor rigging
Page 1 of 1
Former City trader Tom Hayes given 14-year sentence for Libor rigging
Jury in landmark case finds 35-year-old guilty of eight counts of conspiracy to fix the international interbank lending rate
Former City trader Tom Hayes has been sentenced to 14 years in jail after becoming the first person to be convicted by a jury of rigging the Libor interest rate.
In a landmark case, Hayes, 35, a former UBS and Citigroup yen derivatives trader, was convicted of eight counts of conspiracy to defraud.
Sentencing him at London’s Southwark crown court, Mr Justice Cooke said: “The conduct involved here is to be marked out as dishonest and wrong and a message sent to the world of banking accordingly The reputation of Libor is important to the city as a financial sector and the banking institutions of the City.
“Probity and honesty is essential as is trust. The Libor activity of which you played a leading part put all that in jeopardy.”
When the judge announced his sentence, Hayes – dressed in a light blue shirt and dark blue jumper with black slacks – put his head in his hands and ran his hands through his hair. During the reading of the judgement he shook his head repeatedly.
Hayes was sentenced to nine-and-a-half years for each of the first four offences to run concurrently and four-and-a-half years for each of the second four. These will run consecutively to total 14 years.
Hayes, from Fleet, Hampshire, was accused of being the ringleader in a vast conspiracy to fix the London interbank offered rate (Libor), a benchmark for $450tn (£290tn) of financial contracts and loans worldwide, between 2006 and 2010.
Motivated by greed and a desire for higher pay, the court heard that Hayes set up a network of brokers and traders that spanned 10 of the world’s most powerful financial institutions, cajoling and at times bribing them to help rig rates – designed to reflect the cost of interbank borrowing – for profit. Hayes would then place large bets on financial markets that were sensitive to Libor moves.
The former trader, who was diagnosed with mild Asperger syndrome just before his trial began, said he was transparent about trying to influence rates and his managers were aware.
But a jury of seven men and five women rejected his defence and found him guilty on all eight counts.
The case was seen as a big test for the Serious Fraud Office and its effectiveness in policing banking fraud.
Hayes claimed he was taking part in an “industry-wide” practice. He described the broking market he worked in as the wild west, a place with no rules and where relationships relied on lavish entertainment. He said it was this high-pressure environment which took its toll on him, prompting him to threaten brokers and pick fights with colleagues to move interest rates to aid his trading.
Hayes is the first person to stand trial for alleged manipulation of the Libor. He was arrested in December 2012 and questioned by the Serious Fraud Office. He told SFO investigators that his trades had earned £150m for UBS in a three year period.
He said he originally confessed to misconduct in 2013 after being “frozen with fear” that he would be extradited to America. He said he did not believe he had acted dishonestly with regard to Libor and that he wanted to do his job “as perfectly” as he could.
US prosecutors wanted to charge Hayes on three counts of conspiracy to fraud, with each one carrying a 20 to 30-year sentence.
He subsequently withdrew from a co-operation agreement with the SFO and in December 2013 pleaded not guilty.
http://www.theguardian.com/uk-news/2015/aug/03/former-city-trader-tom-hayes-convicted-of-libor-rigging
1 down, a few thousand to go.
Former City trader Tom Hayes has been sentenced to 14 years in jail after becoming the first person to be convicted by a jury of rigging the Libor interest rate.
In a landmark case, Hayes, 35, a former UBS and Citigroup yen derivatives trader, was convicted of eight counts of conspiracy to defraud.
Sentencing him at London’s Southwark crown court, Mr Justice Cooke said: “The conduct involved here is to be marked out as dishonest and wrong and a message sent to the world of banking accordingly The reputation of Libor is important to the city as a financial sector and the banking institutions of the City.
“Probity and honesty is essential as is trust. The Libor activity of which you played a leading part put all that in jeopardy.”
When the judge announced his sentence, Hayes – dressed in a light blue shirt and dark blue jumper with black slacks – put his head in his hands and ran his hands through his hair. During the reading of the judgement he shook his head repeatedly.
Hayes was sentenced to nine-and-a-half years for each of the first four offences to run concurrently and four-and-a-half years for each of the second four. These will run consecutively to total 14 years.
Hayes, from Fleet, Hampshire, was accused of being the ringleader in a vast conspiracy to fix the London interbank offered rate (Libor), a benchmark for $450tn (£290tn) of financial contracts and loans worldwide, between 2006 and 2010.
Motivated by greed and a desire for higher pay, the court heard that Hayes set up a network of brokers and traders that spanned 10 of the world’s most powerful financial institutions, cajoling and at times bribing them to help rig rates – designed to reflect the cost of interbank borrowing – for profit. Hayes would then place large bets on financial markets that were sensitive to Libor moves.
The former trader, who was diagnosed with mild Asperger syndrome just before his trial began, said he was transparent about trying to influence rates and his managers were aware.
But a jury of seven men and five women rejected his defence and found him guilty on all eight counts.
The case was seen as a big test for the Serious Fraud Office and its effectiveness in policing banking fraud.
Hayes claimed he was taking part in an “industry-wide” practice. He described the broking market he worked in as the wild west, a place with no rules and where relationships relied on lavish entertainment. He said it was this high-pressure environment which took its toll on him, prompting him to threaten brokers and pick fights with colleagues to move interest rates to aid his trading.
Hayes is the first person to stand trial for alleged manipulation of the Libor. He was arrested in December 2012 and questioned by the Serious Fraud Office. He told SFO investigators that his trades had earned £150m for UBS in a three year period.
He said he originally confessed to misconduct in 2013 after being “frozen with fear” that he would be extradited to America. He said he did not believe he had acted dishonestly with regard to Libor and that he wanted to do his job “as perfectly” as he could.
US prosecutors wanted to charge Hayes on three counts of conspiracy to fraud, with each one carrying a 20 to 30-year sentence.
He subsequently withdrew from a co-operation agreement with the SFO and in December 2013 pleaded not guilty.
http://www.theguardian.com/uk-news/2015/aug/03/former-city-trader-tom-hayes-convicted-of-libor-rigging
1 down, a few thousand to go.
Guest- Guest
Similar topics
» Immigration adds a city a year
» BLM remove and "drown" statue of racist slave trader in Bristol.
» Predictions On Vote Rigging
» Former Barclays bankers charged over Libor allegations
» Hong Kong regulators fine RBS £450,000 over trader losses
» BLM remove and "drown" statue of racist slave trader in Bristol.
» Predictions On Vote Rigging
» Former Barclays bankers charged over Libor allegations
» Hong Kong regulators fine RBS £450,000 over trader losses
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
Sat Mar 18, 2023 12:28 pm by Ben Reilly
» TOTAL MADNESS Great British Railway Journeys among shows flagged by counter terror scheme ‘for encouraging far-right sympathies
Wed Feb 22, 2023 5:14 pm by Tommy Monk
» Interesting COVID figures
Tue Feb 21, 2023 5:00 am by Tommy Monk
» HAPPY CHRISTMAS.
Sun Jan 01, 2023 7:33 pm by Tommy Monk
» The Fight Over Climate Change is Over (The Greenies Won!)
Thu Dec 15, 2022 3:59 pm by Tommy Monk
» Trump supporter murders wife, kills family dog, shoots daughter
Mon Dec 12, 2022 1:21 am by 'Wolfie
» Quill
Thu Oct 20, 2022 10:28 pm by Tommy Monk
» Algerian Woman under investigation for torture and murder of French girl, 12, whose body was found in plastic case in Paris
Thu Oct 20, 2022 10:04 pm by Tommy Monk
» Wind turbines cool down the Earth (edited with better video link)
Sun Oct 16, 2022 9:19 am by Ben Reilly
» Saying goodbye to our Queen.
Sun Sep 25, 2022 9:02 pm by Maddog
» PHEW.
Sat Sep 17, 2022 6:33 pm by Syl
» And here's some more enrichment...
Thu Sep 15, 2022 3:46 pm by Ben Reilly
» John F Kennedy Assassination
Thu Sep 15, 2022 3:40 pm by Ben Reilly
» Where is everyone lately...?
Thu Sep 15, 2022 3:33 pm by Ben Reilly
» London violence over the weekend...
Mon Sep 05, 2022 2:19 pm by Tommy Monk
» Why should anyone believe anything that Mo Farah says...!?
Wed Jul 13, 2022 1:44 am by Tommy Monk
» Liverpool Labour defends mayor role poll after turnout was only 3% and they say they will push ahead with the option that was least preferred!!!
Mon Jul 11, 2022 1:11 pm by Tommy Monk
» Labour leader Keir Stammer can't answer the simple question of whether a woman has a penis or not...
Mon Jul 11, 2022 3:58 am by Tommy Monk
» More evidence of remoaners still trying to overturn Brexit... and this is a conservative MP who should be drummed out of the party and out of parliament!
Sun Jul 10, 2022 10:50 pm by Tommy Monk
» R Kelly 30 years, Ghislaine Maxwell 20 years... but here in UK...
Fri Jul 08, 2022 5:31 pm by Original Quill