In a dramatic twist of events, two former traders convicted of manipulating benchmark interest rates faced a crushing blow as an English appellate court upheld their convictions, deeming their trials fair.
The Court of Appeal dismissed efforts by Tom Hayes, 44, a former trader with Citigroup and UBS, and Carlo Palombo, a former Barclays banker, to overturn their convictions for allegedly submitting false interest rate submissions during the tumultuous 2008 financial crisis.
Justice David Bean emphasized that binding precedent required submissions to reflect the cheapest or best rate at which banks could borrow, underscoring the gravity of their actions during a critical juncture in financial history.
While a U.S. appellate court approached the matter differently, Justice Bean asserted that the essence of Libor and Euribor codes constituted binding contracts akin to legislation. Permitting jurors to decipher their meaning risked inconsistent verdicts, he cautioned.
“The jury in these cases could not address whether the submissions were, or would be, an honest and genuine assessment without being given an answer to the question, ‘An assessment of what?'” Justice Bean elucidated.
