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| City traders have rate-rigging convictions quashed | City traders have rate-rigging convictions quashed |
| (32 minutes later) | |
| Tom Hayes says it "feels surreal" to have his conviction quashed | Tom Hayes says it "feels surreal" to have his conviction quashed |
| Two former City traders who were at the centre of one of the biggest scandals of the financial crisis have had their convictions quashed following a 10-year fight. | Two former City traders who were at the centre of one of the biggest scandals of the financial crisis have had their convictions quashed following a 10-year fight. |
| Tom Hayes and Carlo Palombo were jailed following trials for manipulating the interest rates used for loans between banks. | Tom Hayes and Carlo Palombo were jailed following trials for manipulating the interest rates used for loans between banks. |
| They were among 19 City traders convicted in the US and UK for manipulating so-called Libor and Euribor interest rates, which are used to set borrowing costs on a range of loans such as mortgages and car finance deals. | They were among 19 City traders convicted in the US and UK for manipulating so-called Libor and Euribor interest rates, which are used to set borrowing costs on a range of loans such as mortgages and car finance deals. |
| Following the ruling on Wednesday, Mr Hayes said the conviction had "destroyed" his family and that it felt "surreal" to be cleared. | Following the ruling on Wednesday, Mr Hayes said the conviction had "destroyed" his family and that it felt "surreal" to be cleared. |
| The Supreme Court's judgement represents a vindication for the traders who have said for 10 years that they were victims of a series of miscarriages of justice. | The Supreme Court's judgement represents a vindication for the traders who have said for 10 years that they were victims of a series of miscarriages of justice. |
| They argued they were wrongly prosecuted for what were normal commercial practices in order to appease public anger towards the banks over the financial crisis. | They argued they were wrongly prosecuted for what were normal commercial practices in order to appease public anger towards the banks over the financial crisis. |
| After a decade-long battle to clear their names, the Supreme Court ruled the criminal trials of Mr Hayes and Mr Palombo were unfair and overturned their convictions. | After a decade-long battle to clear their names, the Supreme Court ruled the criminal trials of Mr Hayes and Mr Palombo were unfair and overturned their convictions. |
| Speaking outside court, Mr Hayes said the decision had been "a long time coming" after his "cruel and pernicious" sentence. He spent five and a half years in jail. | Speaking outside court, Mr Hayes said the decision had been "a long time coming" after his "cruel and pernicious" sentence. He spent five and a half years in jail. |
| "It destroyed my family, [I] missed most of my son's childhood," he said, adding that it also led to the end of his marriage. | "It destroyed my family, [I] missed most of my son's childhood," he said, adding that it also led to the end of his marriage. |
| "For so long I've been an international fugitive...and now I can move on with my life, or try to." | "For so long I've been an international fugitive...and now I can move on with my life, or try to." |
| Mr Palombo said it had been "a crazy experience". | Mr Palombo said it had been "a crazy experience". |
| "I don't even know how I feel right now," he said. "It's a mixture of relief, happiness." | "I don't even know how I feel right now," he said. "It's a mixture of relief, happiness." |
| The Serious Fraud Office, which brought the original case against the traders, said it would not seek a retrial. | The Serious Fraud Office, which brought the original case against the traders, said it would not seek a retrial. |
| Mr Hayes and Mr Palombo were among a group of traders and brokers prosecuted for rigging interest rates in nine criminal trials in London and New York between 2015 and 2019. | Mr Hayes and Mr Palombo were among a group of traders and brokers prosecuted for rigging interest rates in nine criminal trials in London and New York between 2015 and 2019. |
| Mr Hayes, a former trader at Swiss bank UBS, was the first banker jailed over the scandal in 2015. | Mr Hayes, a former trader at Swiss bank UBS, was the first banker jailed over the scandal in 2015. |
| Originally sentenced to 15 years in prison, he reduced it to 11 years on appeal and was later released in January 2021. | Originally sentenced to 15 years in prison, he reduced it to 11 years on appeal and was later released in January 2021. |
| Mr Palombo was sentenced to four years in jail in 2019. He was also released in 2021. | Mr Palombo was sentenced to four years in jail in 2019. He was also released in 2021. |
| What was Libor? | What was Libor? |
| Libor, or the London interbank offered rate, was a key interest rate used to set borrowing costs for trillions of dollars worth of financial deals | |
| It became the focus of allegations of wrongdoing following the financial crisis in 2008 | It became the focus of allegations of wrongdoing following the financial crisis in 2008 |
| Dozens of City traders were accused of trying to manipulate what level Libor was set at, to help the banks they worked for | Dozens of City traders were accused of trying to manipulate what level Libor was set at, to help the banks they worked for |
| Libor was phased out after 2021 | Libor was phased out after 2021 |
| Carlo Palombo, centre left, and Tom Hayes, centre right, celebrate after having their convictions overturned. | Carlo Palombo, centre left, and Tom Hayes, centre right, celebrate after having their convictions overturned. |
| The 2008 financial crisis began after the housing bubble burst, leading to widespread panic by banks which had invested billions and billions of dollars in the sector. | |
| The collapse of US investment bank Lehman Brothers - once considered "too big to fail" - sent shockwaves through the global financial system which spread to the wider economy, triggering recessions across many countries. | The collapse of US investment bank Lehman Brothers - once considered "too big to fail" - sent shockwaves through the global financial system which spread to the wider economy, triggering recessions across many countries. |
| The BBC has uncovered evidence of a much larger, state-led 'rigging' of interest rates, under pressure from central banks and governments across the world during the financial crisis. | The BBC has uncovered evidence of a much larger, state-led 'rigging' of interest rates, under pressure from central banks and governments across the world during the financial crisis. |
| Evidence implicating Downing Street and the Bank of England was suppressed throughout the criminal trials. | Evidence implicating Downing Street and the Bank of England was suppressed throughout the criminal trials. |
| In 2022, US courts said there was no evidence traders had broken any laws or rules and all the American convictions were quashed – leaving the UK the only country in the world where what they were accused of was criminalised. | In 2022, US courts said there was no evidence traders had broken any laws or rules and all the American convictions were quashed – leaving the UK the only country in the world where what they were accused of was criminalised. |
| In the UK, the traders' cases had been blocked from reaching the Supreme Court by the Court of Appeal five times between 2015 and 2019. | In the UK, the traders' cases had been blocked from reaching the Supreme Court by the Court of Appeal five times between 2015 and 2019. |
| Now the Supreme Court has exonerated Mr Hayes and Mr Palombo, the remaining traders convicted of so-called interest rate "rigging" will also apply to have their convictions quashed. | Now the Supreme Court has exonerated Mr Hayes and Mr Palombo, the remaining traders convicted of so-called interest rate "rigging" will also apply to have their convictions quashed. |
| Lord Leggatt, one of five justices reviewing the case, said jury direction errors made during the trials of the former bankers made the convictions "unsafe" and therefore could not stand. | Lord Leggatt, one of five justices reviewing the case, said jury direction errors made during the trials of the former bankers made the convictions "unsafe" and therefore could not stand. |
| "That misdirection undermined the fairness of the trial," he added. | "That misdirection undermined the fairness of the trial," he added. |
| In a statement, the Serious Fraud Office (SFO) acknowledged the judgement and said it had "determined it would not be in the public interest for us to seek a retrial". | In a statement, the Serious Fraud Office (SFO) acknowledged the judgement and said it had "determined it would not be in the public interest for us to seek a retrial". |