While it is perhaps an overstatement to say that literally everyone who had anything to do with the setting of the nearly late and mostly unlamented London Interbank Offered Rate was manipulating it, it also seems fair to say that the shenanigans which led to more than $9 billion in global fines against the banks charged with setting it were the work of more than just the five relatively junior guys who saw the inside of a prison cell for it. And none enjoyed the hospitality of Her Majesty’s Prisons for as long as former RBS/UBS/Citi banker Tom Hayes, who spent half of an 11-year sentence (originally 14 years!) in the clink before his release early last year.
And while Hayes paid more dearly for the scandal than anyone else, those “traumatic” five-and-a-half years might not have been the end of it, for Hayes remained under indictment in the U.S. Happily for him, however, Libor manipulation is no longer illegal on this side of the Atlantic, and so he won’t be returning for a second, almost certainly more traumatic given the state of American prisons, stint behind bars.
US prosecutors asked the judge to throw out the case against Hayes saying there was no provable case after an appellate court overturned the convictions of two Deutsche Bank AG traders over interest rate fixing, according to a court filing…. “At last, after ten years the threat of extradition to the USA for doing my job legitimately as a trader has been lifted,” Hayes said in a statement Monday. “It is now time for the UK to examine the convictions of all traders. The UK is now the sole jurisdiction that deems our conduct to have been criminal.”
Convicted Ex-UBS Trader Tom Hayes Has US Libor-Fixing Indictment Dismissed [Bloomberg via Yahoo!]
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