City traders convictions quashed after decade-long Libor fight
Two former City traders, Tom Hayes and Carlo Palombo, have seen their convictions quashed after a ten‑year legal struggle over one of the most high‑profile financial scandals in recent history. Both men were at the centre of the Libor and Euribor interest rate investigations, which shaped how banks set borrowing costs on mortgages, car finance and business loans across the world.
The ruling marks a remarkable shift in how the authorities now view the prosecutions that followed the 2008 financial crisis. Hayes, a former UBS trader, was the first banker jailed for the scandal in 2015. Palombo, previously at Barclays, followed in 2019. They were among 19 City professionals convicted on both sides of the Atlantic for manipulating the benchmarks used to calculate trillions of pounds worth of financial products. The Supreme Court has now ruled that the way they were prosecuted was unfair and that their convictions cannot stand.
Speaking outside court, Hayes described the moment as “surreal” and admitted the years behind bars had left deep scars on his family life. He said the time away meant missing much of his son’s childhood and losing his marriage. Palombo, meanwhile, described the journey as “a crazy experience”, saying it was hard to put his feelings into words after finally clearing his name. Both have signalled they may seek legal advice on compensation, though Hayes added no amount of money would make up for lost years.
The Serious Fraud Office confirmed it would not seek a retrial. Libor, the London Interbank Offered Rate, was once central to global finance, but following years of criticism it was phased out after 2021. It became a symbol of wrongdoing after the 2008 crash when some banks were found to have skewed submissions to either boost profits or disguise their own financial strain. The scandal led to sweeping reforms and, in many ways, redefined public trust in the financial sector.
Hayes and Palombo’s successful appeals raise difficult questions about how justice was delivered in the years after the crisis. Their decade-long fight highlights the complexity of holding individuals to account for practices that were once considered standard in certain trading circles. For context on how interest benchmarks operate, you can visit this Bank of England guide.
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[Image Credit – PA Media]
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