US drops rate-rigging charges against ex-Citi and UBS trader Tom Hayes
A New York judge has thrown out criminal charges against Tom Hayes, the former UBS and Citigroup trader who served more than five years in prison in the UK for conspiring to manipulate the Libor benchmark interest rate.
The scandal over Libor — the London Interbank Offered Rate — sent shockwaves through global financial markets more than a decade ago. Several banks were required to pay fines for rigging the benchmark in their favour.
At issue was the way the interest rate was set, based on banks’ submissions rather than actual transactions, potentially allowing traders to push the rate higher or lower and profit from the effect on derivatives contracts.
This story originally appeared on: Financial Times - Author:Kate Beioley
