City traders seek legal recourse to clear their names after being imprisoned for Libor rigging

Four City traders who were imprisoned for fixing a key interest rate are now preparing a new legal challenge to clear their names.

This comes after news that another trader, Tom Hayes, won the right to appeal his conviction in the UK for rigging the Libor rate used by major banks to price short-term loans.

Hayes, 43, became the first Briton to be jailed for Libor fixing, and his case was referred to the Court of Appeal by the Criminal Cases Review Commission (CCRC) last week.

The ruling in Hayes’ case has encouraged four other traders to launch a separate legal campaign to clear their names. One of them is also joining Hayes’ challenge in the Court of Appeal, with up to five others potentially joining the group action.

Legal battles surrounding the Libor scandal have persisted since it came to light a decade ago, causing significant disruptions in global markets and resulting in billions of pounds in fines for banks.

The Serious Fraud Office (SFO) accused Hayes of being the “ringmaster” behind an international conspiracy, but he was not the only one who served years in prison.

Former Barclays trader Carlo Palombo, who received a four-year sentence for Libor rigging, plans to join Hayes in the Court of Appeal. He expressed his determination to fight for justice, stating, “I am going to fight this till I die.”

Hayes, on hearing the news that his case was referred back to the Court of Appeal after six and a half years, revealed, “It has been a long and hard battle for me. I am just so thankful to everyone who has stuck by me.”

A spokesperson for the SFO stated, “All our prosecutions are based on evidence and the applicable law. We stand ready to support the Court of Appeal as it considers this referral.”