What's happened
Former bankers Tom Hayes and Carlo Palombo have lost their appeals against their convictions for rigging Libor and Euribor interest rates. The Court of Appeal dismissed their bids to overturn the convictions, which were related to their roles in manipulating benchmark rates that track banks' borrowing costs. Hayes, the first banker to be convicted in the 2012 rate-rigging scandal, served five and a half years in prison before being released in 2021.
Why it matters
The dismissal of the appeal by the UK Court of Appeal is significant as it upholds the convictions of the former bankers involved in manipulating key interest rates. This decision reinforces the consequences for financial misconduct and sends a message about accountability in the banking sector. The case highlights the scrutiny faced by individuals involved in financial crimes and the ongoing efforts to ensure integrity in financial markets.
What the papers say
The Court of Appeal's decision to dismiss the appeal by Tom Hayes and Carlo Palombo has been met with mixed reactions. While some, like former Lord Chancellor Lord Mackay of Clashfern, have expressed concerns about the fairness of the ruling, others, such as the Serious Fraud Office, have opposed the appeals. The differing opinions reflect the complexity of the case and the ongoing debate surrounding financial misconduct in the banking industry.
How we got here
Tom Hayes and Carlo Palombo were among 37 City traders prosecuted for manipulating rate benchmarks Libor and Euribor. The convictions were related to their roles in rigging key interest rates that track banks' borrowing costs. The case stemmed from the 2012 rate-rigging scandal, which exposed widespread manipulation of benchmark rates by traders at top financial institutions. The scandal led to increased regulatory scrutiny and efforts to reform the financial industry.
Common question
More on these topics
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Tom Hayes is a former trader for UBS and Citigroup who was sentenced to 14 years in prison for dishonestly driving manipulation of the London Interbank Offered Rate, a bank reported interest rate, to enhance his trading results.
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The London Inter-bank Offered Rate is an interest-rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks. The resulting average rate is usually abbre