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Former trader at UBS and Citigroup charged with LIBOR fraud
By Finfacts Team
Jun 18, 2013 - 4:20 PM
Tom Hayes, a former trader at UBS and Citigroup,
has today been charged with offences of conspiracy to defraud in connection with
the investigation by the Serious Fraud Office into the manipulation of LIBOR.
It's not clear if the activity covered Hayes' time in both banks.
Tom Alexander William Hayes, 33, of Surrey was one of the three individuals
arrested and interviewed on 11 December 2012 by officers from the SFO and City
of London Police. He attended Bishopsgate police station this morning where he
was charged by City of London Police with eight counts of fraud. He will appear
before Westminster Magistrates' Court at a later date.
The SFO's investigation into the manipulation of LIBOR continues.
In December 2012, UBS, Switzerland's biggest bank, paid a $1.5bn penalty for
taking part in a scheme over several years to manipulate Libor and other
benchmark interest rates.
Other major European banks were also involved in the scandal, including
Barclays, Royal Bank of Scotland and Deutsche Bank.
LIBOR (London Interbank Offered Rate) has been calculated by the British
Bankers' Association as an average from daily submissions by individual banks of
their own wholesale rates. The rate determines the price of more than $300tn
worth of loans including mortgages, credit cards, business and students’ loans
as well as derivatives such as options and more complex instruments.
The European Union has announced plans to take supervision of LIBOR and other
benchmark rates from London and shift it to the Paris-based European Securities
and Markets Authority (ESMA).
Michel Barnier, EU Financial Services commissioner, said earlier this
month that he would draft legislation over the next few weeks, granting ESMA
appropriate powers to supervise Libor, as well as oil and commodities indices,
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