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Trader jailed over Libor rates scandal

By Kate Ferguson

Published 04/08/2015

Tom Hayes, a highly-paid ex trader at UBS and Citigroup, orchestrated a scheme to interfere with the rate to boost his own six-figure earnings
Tom Hayes, a highly-paid ex trader at UBS and Citigroup, orchestrated a scheme to interfere with the rate to boost his own six-figure earnings

A "greedy" City trader has become the first man to be jailed for rigging Libor rates in a scandal that shook financial markets.

Tom Hayes (35) was handed a 14-year prison term for his role as the "ringmaster" in an enormous fraud to manipulate the benchmark interest rates.

Sentencing him at London's Southwark Crown Court, Mr Justice Cooke said: "What this case has shown is the absence of that integrity which ought to characterise banking.

"You, as a regulated banker, succumbed to temptation in an unregulated activity because you could."

Hayes, a highly-paid ex trader at UBS and Citigroup, orchestrated a scheme to interfere with the rate to boost his own six-figure earnings.

In an audio clip he said "influencing" Libor was "commonplace" and admitted he was a "serial offender".

Hayes, of Fleet, Hampshire, was found guilty of eight counts of conspiracy to defraud - covering a period from 2006 to 2010 - when he worked for UBS and Citigroup.

It took the jurors just over a week to reach their verdicts following trial lasting two months.

The judge said: "You played a leading role in the manipulation of Libor.

"You exerted pressure on others, essentially trained those junior to you in the activity, made corrupt payments to brokers for their assistance.

"The conduct involved here is to be marked out as dishonest and wrong, and a message sent to the world of banking accordingly."

A string of banks including Barclays, Lloyds Banking Group, Royal Bank of Scotland and Deutsche Bank have been fined billions of pounds for their part in the Libor scandal.

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