Recently, the news has featured the call by senior politicians for Tom Hayes and Carlo Palombo to have their cases heard at the UK's final court of appeal. This development is linked to the ongoing scrutiny and legal actions surrounding the manipulation of the London Inter-bank Offered Rate (Libor). Tom Hayes, a former trader, was convicted in 2015 for manipulating Libor, while Carlo Palombo, another trader, was acquitted in a separate trial.
Libor, the London Inter-bank Offered Rate, is an interest-rate average that serves as a benchmark for global financial products worth trillions of dollars. It is calculated based on estimates submitted by major banks in London, reflecting the rates they would expect to pay to borrow funds from other banks. The rate is used as a reference for various financial transactions worldwide, including loans, mortgages, and derivatives. The manipulation of Libor rates by traders like Tom Hayes has raised significant concerns about the integrity and transparency of the financial system.