Four urban financial experts challenge their Libor conviction verdicts in response to a groundbreaking judgment
In a recent development in the ongoing Libor scandal, two former City traders, Tom Hayes and Carlo Palombo, are seeking to appeal their convictions related to the manipulation of benchmark interest rates. Hayes, a former star trader at UBS, and Palombo, an ex-trader at Barclays, had been convicted of rigging Libor and Euribor, respectively.
The UK Supreme Court quashed their convictions in July 2025, clearing their names about a decade after their respective convictions and prison sentences. The court ruled that the juries at both trials were misdirected by the trial judges, which formed the basis for allowing their appeals.
The principal ground for their appeals was the judicial misdirection of juries during their criminal trials. The overturned convictions of Hayes and Palombo are the latest development in the Libor scandal that was uncovered in 2012. An investigation revealed that several banks, including Barclays, had colluded to manipulate the Libor rate, a key benchmark interest rate used to price financial products worldwide.
The Libor scandal resulted in numerous investigations, fines, and legal actions against the banks involved. One bank, Barclays, was accused of manipulating the LIBOR rate for profit between 2005 and 2009. The scandal also led to significant financial losses for investors and consumers.
Four other former City traders, including Philippe Moryoussef, Jay Merchant, Jonathan Mathew, and Christian Bittar, are planning to appeal their convictions for manipulating Libor and Euribor rates. Moryoussef was convicted in absentia in a later trial after refusing to attend court and leaving for France.
The appeal of the convictions of Moryoussef, Merchant, Mathew, and Bittar could potentially further complicate the Libor scandal. The Serious Fraud Office (SFO) announced it would not seek a retrial against Hayes and Palombo following the Supreme Court's decision.
It is important to note that the Libor rate was permanently retired by the City regulator in October 2020, replaced by the Secured Overnight Financing Rate (SOFR) in the United States and the Sterling Overnight Index Average (SONIA) in the United Kingdom.
Law firm Hickman & Rose is representing Merchant, Moryoussef, Mathew, and Bittar in their appeals. The firm announced its intention to appeal all the convictions of the four traders on Thursday evening.
References: [1] BBC News. (2025, July 22). Tom Hayes: Libor trader's conviction overturned. https://www.bbc.com/news/business-57960238 [2] The Guardian. (2025, July 22). Tom Hayes's libor conviction overturned as UK supreme court rules on appeal. https://www.theguardian.com/business/2025/jul/22/tom-hayes-libor-conviction-overturned-uk-supreme-court-rules-on-appeal
The overturned convictions of Tom Hayes and Carlo Palombo, following a ruling by the UK Supreme Court in July 2025, have the potential to affect the ongoing Libor scandal, a key financial news story. Law firm Hickman & Rose is now representing four other former City traders, including Philippe Moryoussef, Jay Merchant, Jonathan Mathew, and Christian Bittar, who are planning to appeal their Libor and Euribor manipulation convictions, adding to the complications of this lengthy business and crime-and-justice case.
