Originally published by Institutional Investor Securities Blog.
A jury in London has found Tom Hayes, a former trader at Citigroup (C) and UBS (UBS), guilty of multiple counts of conspiring to rig the London interbank offered rate. He was sentenced to 14 years in prison.
Prosecutors accused him of heading up the scam to manipulate the yen Libor. They said that he asked rate setters and traders at UBS and other banks, as well as outside brokers, to manipulate the rate so that his trading positions would benefit. He also is accused of giving brokers incentives to help him get other banks to rig the rate.
Hayes had defended himself, arguing that he acted in line with industry standards and did not think his conduct was improper. He claims that his superiors knew about his activities.
Hayes was considered one of the top traders internationally. He made hundreds of millions of dollars in revenue for UBS by trading interest-rate swaps. After going to Citigroup, he was fired in 2010 for rigging Libor. While he initially denied wrongdoing, he eventually entered into an agreement to plead guilty. As part of that deal he was to testify against alleged co-collaborators.
Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.
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