Former City trader Tom Hayes given 14-year sentence for Libor rigging

From The Guardian –

“Former City trader Tom Hayes has been sentenced to 14 years in jail after becoming the first person to be convicted by a jury of rigging the Libor interest rate.

Hayes, 35, a former UBS and Citigroup yen derivatives trader, was convicted of eight counts of conspiracy to defraud.

Sentencing him at London’s Southwark crown court, Mr Justice Cooke said: “The conduct involved here is to be marked out as dishonest and wrong and a message sent to the world of banking accordingly. The reputation of Libor is important to the city as a financial sector and the banking institutions of the City.

“Probity and honesty is essential as is trust. The Libor activity of which you played a leading part put all that in jeopardy.”

When the judge announced his sentence, Hayes – dressed in a light blue shirt and dark blue jumper with black slacks – put his head in his hands and ran his hands through his hair. During the reading of the judgement he shook his head repeatedly.”

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UBS Gave Out ‘Instruction Manual on Fixing Libor’ - Hayes

From Bloomberg –

“Thomas Hayes, a former trader on trial over charges he manipulated benchmark rates, told prosecutors in 2013 that UBS Group AG distributed “an instruction manual on fixing Libor” to suit their trading positions.

The Swiss bank’s e-mailed “Guide to Publishing Libor Rates,” which was shown to jurors by prosecutors in London Thursday, included an instruction for traders to adjust their submissions depending on their “delta/fixing position.”

“If 3m Libor” exposure “is 4,125 this means we are receiving” and “therefore we want to increase the fixing by 25 basis points,” according to the internal UBS guide. “If the number is negative then vice-versa.”

Hayes, the first person to stand trial for allegedly manipulating the London interbank offered rate, told prosecutors the document was evidence that Libor-rigging was standard operating procedure during his time at UBS.”

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Broking market like "Wild West", London Libor trial told

From Reuters –

“Tom Hayes, a former trader on trial in London for alleged interest rate rigging, described the broking market he worked in as the "Wild West" with no rules and where relationships relied on lavish entertainment, a court heard on Tuesday.

The court was told that this was also a high-pressure environment, which took its toll on Hayes, prompting him to threaten brokers and pick fights with colleagues in his efforts to move interest rates to aid his trading.

The criminal trial heard how Hayes, a former UBS and Citigroup yen derivatives trader, threatened to drop brokers if he felt they failed to help to persuade traders at other banks to move benchmark interest rates in directions to suit his trading book.

Hayes is the first person to stand trial on charges of alleged manipulation of the London interbank offered rate or Libor, used to price an estimated $450 trillion of financial contracts worldwide. British prosecutors allege Hayes was the ringmaster in a conspiracy with 25 staff from at least 10 banks and brokerages to rig the interest rate benchmark.”

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