Tom Hayes and Carlo Palombo have failed their attempt to overturn convictions related to manipulating key interest rates. Despite controversy and parallels to overturned US cases, their appeals have been dismissed, with potential further action aimed at the Supreme Court.
Former bankers Tom Hayes and Carlo Palombo have lost their appeal against convictions for manipulating key interest rates, the London Inter-Bank Offered Rate (Libor), and the Euro Interbank Offered Rate (Euribor), respectively. The Court of Appeal maintained its stance, with Hayes having previously attempted to overturn his conviction for nine years after being described as the “ringmaster” of the scheme. Initially sentenced to 15 years, Hayes had his term reduced to 11 years but remained determined in his legal battle.
Hayes, associated with UBS and Citigroup, and Palombo, a former Barclays trader, were implicated in rate manipulation schemes that came to public attention in 2012 following the financial crisis. This activity has led to extensive prosecutions and heavy fines for the banks involved, though no senior executives have been prosecuted. The UK stands as the singular jurisdiction treating such conduct criminally, unlike other countries. BBC investigations unveiled possible involvements by central banks, including the Bank of England, in setting these rates, revealing questionable practices within the City of London financial sector.
Despite the controversy and the overturned convictions in the US raising questions about the validity of their trial, the Court of Appeal dismissed the appeals, reaffirming the original convictions. The decision has significant implications for accountability and integrity in financial markets, underscoring the rule of law in such cases. Hayes and Palombo, determined to pursue justice, plan to take their cases to the Supreme Court.
