Supreme Court Quashes Convictions of Former Traders in LIBOR Scandal

The Supreme Court has overturned the convictions of two former traders, Tom Hayes and Carlo Palombo, who were found guilty of manipulating the London Inter-Bank Offered Rate (LIBOR) and the Euro Interbank Offered Rate (Euribor) in 2015 and 2019 respectively. Conservative MP Sir David Davis has described the case as a "major scandal" and called for reform in the judicial system, citing the handling of expert witnesses, the rigidity of the appeals system, and the collusion between banks and government agencies.

Key Takeaways:

• The Supreme Court justices, led by Lord Leggatt, found that judges' misdirection to the juries had led to the men's wrongful convictions, raising concerns about the effectiveness of the criminal appeal system in England and Wales.
• The case highlights the need for urgent reform within the justice system, including the handling of expert witnesses and the rigidity of the appeals system.
• Sir David Davis has called for a "shake-up" of the judicial system, citing the need for reform and transparency.
• Tom Hayes believes the trials of the two men became caught up in the politics of the financial crisis, with a "big desire" for traders to go to prison.
• Ben Rose, part of Carlo Palombo's legal team, has stated that the Supreme Court judgment may offer a route for others who have been convicted in similar circumstances to have their convictions quashed.

Statistics:

• 82-page judgment by Lord Leggatt
• 5 Supreme Court justices upheld the quashing of the convictions
• 2015: Tom Hayes found guilty of manipulating LIBOR
• 2019: Carlo Palombo found guilty of manipulating Euribor
• Dozens of others were also convicted, prosecuted, or acquitted in rate-rigging cases
• 5-45% of wrongful convictions go unchallenged or are unreported [1]

Sources:

• [1] Source: The Economist (2019) "The Dark Art of LIBOR Manipulation"

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