UK jury says trader guilty of manipulating key interest rate

Hayes told investigators that “influencing” Libor was “commonplace” and referred to himself as a “serial offender”.

Hayes was found guilty on all eight counts of conspiracy to defraud at Southwark Crown Court.

“The motive was a simple one: it was greed”.

Libor, an estimate of the average interest rate for banks borrowing from other banks, is a key reference for many financial products around the world, from consumer loans to savings accounts.

Throughout the trial, which began on May 26, the prosecution argued that Hayes colluded with a number of individuals at banks and brokers to manipulate the Japanese yen Libor rate, which ultimately benefited his trading book at the expense of counterparties.

The judge Mr Justice Cooke described Hayes as “by nature a gambler” who was driven by a thirst for money.

Libor is calculated daily, using estimates from banks of their own interbank rates.

In the telephone call played to the jury Hayes asked: ‘Mate, can you do me a big favour and ask him if he will set three month Libor on the low side in the next few days.’.

Hayes’s legal costs were paid by legal aid, which is funded by the British taxpayer.

Hayes, described as “extremely intelligent”, worked for Royal Bank of Scotland and Royal Bank of Canada before joining UBS in 2006 as a trader in Tokyo.

In 2009, he joined Citi after feeling “that UBS were not paying him enough”, and went on to receive £3.5m (around €5m) before tax for just nine months’ work.

He was sacked after his methods were formally reported to senior management.

“Everyone who has ever worked with him has come away with the impression of a really unique man who is capable of doing really wonderful things when he puts his mind to it, but also doesn’t really know limits”.

He faces the possibility of being extradited to the US where he was charged over Libor rigging in December 2012.

“It was a matter between the SFO (Britain’s Serious Fraud Office) and Mr Hayes and UBS has no comment”.

“UBS was not a party to this case”, the Zurich-based bank said in an emailed statement. “The bank has resolved this legacy matter with most authorities”.