Traders in the city accuse authorities of a 'purge' following rate-fixing investigations and retaliations
In a landmark decision on July 23, 2025, the Supreme Court of the United Kingdom overturned the convictions of former City traders Tom Hayes and Carlo Palombo, who were accused of manipulating LIBOR and EURIBOR respectively. The key factor in their successful appeal was the argument that their actions, while considered criminal by the courts, were perceived as normal commercial practices during the time of the alleged offenses, especially in the context of the financial crisis.
Tom Hayes, the first of nine traders prosecuted by the Serious Fraud Office, was originally sentenced to 14 years in jail, one of the toughest sentences ever handed out for white collar crime. He served more than five years in prison, including at the high security prison Belmarsh. During his incarceration, Hayes mentioned that his marriage broke down, and his mental health deteriorated.
Carlo Palombo, who was convicted in 2019 for rigging Euribor, served time at Wandsworth Prison. Like Hayes, Palombo argued that he was made responsible for damage caused by the financial crisis and was a victim of a "purge" by banks and regulators.
The specific reasons for the misdirection in their trials were not detailed in the available reports, but the quashing of their convictions suggests that the court found flaws in how their activities were interpreted and prosecuted. The Supreme Court's decision indicates that the evidence presented or the legal framework applied at the time may not have been appropriate for the charges brought against them. The involvement of the Criminal Cases Review Commission (CCRC) and the subsequent appeals process underscored the complexity of the legal issues at play.
The context and commercial practices of the financial industry at the time might have influenced the perception of their activities as criminal rather than commercial. The aftermath of the financial crisis created significant public and political pressure to hold individuals accountable for banking practices. This environment might have contributed to the initial prosecution and conviction of the traders. However, the legal and procedural issues highlighted during the appeals process led to the eventual overturning of the convictions.
Both Hayes and Palombo are trying to move on with their lives. Hayes, in a statement after the Supreme Court's decision, spoke out about his decade-long battle for justice. He expressed a desire to move to the sea and rebuild his family. Palombo, on the other hand, remains cautious, aware that the legal saga may not be entirely over.
[1] The Telegraph, "Supreme Court overturns Libor convictions of Tom Hayes and Carlo Palombo," July 23, 2025. [2] BBC News, "Tom Hayes and Carlo Palombo: Libor and Euribor manipulation convictions quashed," July 23, 2025.
- The financial crisis and the subsequent political pressure led to the initial prosecution and conviction of Tom Hayes and Carlo Palombo for manipulating LIBOR and EURIBOR, but the complex legal issues raised during their appeals process eventually resulted in the Supreme Court overturning their convictions.
- In the landmark decision on July 23, 2025, the Supreme Court indicated that the evidence presented or the legal framework applied at the time may not have been appropriate for the charges brought against Tom Hayes and Carlo Palombo.
- The Court's decision to quash the convictions of Hayes and Palombo highlights the need for a careful scrutiny of business practices, especially within the banking-and-insurance sector, to ensure that commercial activities are not inadvertently criminalized or prosecuted in a biased manner.
