Wed, 23 Jul 2025

Wed, 23 Jul 2025 Why were the traders' convictions quashed?

Convictions for rate-rigging by Tom Hayes and Carlo Palombo have been quashed, so what happens now?
Two former City traders, Tom Hayes and Carlo Palombo, have had their convictions for rate-rigging overturned by the UK's Supreme Court. The court ruled that the trials of both men were unfair due to incorrect directions given to the jury. As a result, the Serious Fraud Office (SFO) has announced that it will not seek a retrial. Hayes and Palombo were convicted in 2015 and 2019 respectively for manipulating interest rates used by banks to set borrowing costs for mortgages and commercial loans. Libor has since been discontinued, while Euribor is being reformed. During the trials, Hayes admitted attempting to manipulate the Libor rate but claimed it was a common practice at his bank. He argued that he was scapegoated for actions of the industry, with evidence emerging that central bankers and government officials had pressured banks to engage in similar conduct. In 2020, a US appeal court ruled that such conduct was not a crime, leading to charges being revoked against Hayes. However, their convictions in the UK remained until now. The Supreme Court's decision marks the end of a 10-year legal battle for both men. They are expected to seek compensation for the time they spent in jail and lost earnings. Conservative MP David Davies has called for a public inquiry into the convictions, while Hayes' solicitor is advocating for reforms to the justice system to prevent similar miscarriages of justice from occurring in the future.
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