A former broker UBS and Citigroup banks was sentenced Monday, August 3 to 14 years in prison by a British court after being found guilty of manipulating the interbank reference rate Libor (London Interbank Offered Rate, the “interbank rate applied in London”). This is a first in this case which cost billions to banks and tarnished their reputation.
Tom Hayes, 35, worked for UBS in Tokyo between 2006 and 2009 before joining Citigroup . According to the indictment, he was the center of the manipulation of Libor denominated in yen. In total, it would have issued 2000 queries manipulations during his three years in the Swiss bank. His accomplices were traders at HSBC, JPMorgan, Deutsche Bank, Royal Bank of Scotland, Citigroup, Rabobank and brokerages ICAP and RP Martin
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The young man, who was diagnosed with Asperger light just before his trial, said he was clear about wanting to influence rates and its leaders were aware.
If Mr. Hayes is under the spotlight, it is not necessarily because he was the most influential in manipulating the Libor. He simply was first pursued by justice. It will not be the last twenty other people are in the United Kingdom and the United States. A second trial will take place and in Britain by the end of the year, and others should follow overseas
Read also:. In Britain Ten years in prison for traders who manipulate markets
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