LIBOR Scapegoat Found Guilty, Sentenced To 14 Years

Tyler Durden's picture

Update: Hayes has been sentenced to 14 years in jail.

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Tom Hayes, the former UBS trader standing trial for his role in manipulating LIBOR, was found guilty on eight counts in a London court. The jury, which deliberated for a week, was unanimous in its decision. To wit, from Bloomberg:

Former UBS Group AG and Citigroup Inc. trader Tom Hayes, the first person to stand trial for manipulating Libor, was found guilty of eight counts of conspiracy to rig the benchmark rate.


After a week of deliberations, jurors unanimously found that the 35-year-old conspired with traders at brokers to dishonestly game the London interbank offered rate to benefit his own trading positions.

As Bloomberg notes, Hayes is the first person to stand trial for rigging the benchmark and had contended that he only pleaded guilty in the first place because he had an intense fear of having to serve a lengthy prison sentence in the US.

Hayes was also quick to remind the court that the practice of gaming the submissions to benefit trading books was so ubiquitous as to be enshrined in an official LIBOR rigging guide called "Guide to Publishing Libor Rates" that was distributed to UBS employees. It was also revealed during the trial that Hayes has been diagnosed with Asperger’s syndrome, which means he tends to "only see the world in black and white" - apparently that was supposed to be seen as a mitigating factor.

In the end, it appears that the public needed a head (not literally we hope), and because prosecuting senior executives for such things is absolutely out of the question even when, as we saw last week with Anshu Jain, they were not only supportive of the practice but in fact physically moved desks around to facilitate it, Hayes will be the fall guy. 

Or, as we put it in June: "Will Hayes' quest to diffuse responsibility and bring down more senior executives with him succeed? Hardly."

We'll give Tom the last word here and although we're not entirely sure what this quote means, we're sure there's a lesson in it somewhere:

"I’ve always wanted to do my job as perfectly as I could, whether I was cleaning a deep fat fryer or deboning a chicken. They always gave me those jobs because they knew there would be no chicken left on the bone and no fat left in the fryer."



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Ignatius's picture

I knew he was guilty the moment I saw his fat fingers.

CrazyCooter's picture

OMG, a white banker going to jail? Didn't they have any Indians in the LIBOR rigging ring?

The seventh seal has been broken...



clooney_art's picture

They are trying hard for diversity.

Diversity in Scape-goating.

hedgeless_horseman's picture



Is it safe for Made-Man Mervyn, Baron of Lothbury, to return from his non-extradition treaty island vacation?  One can only take so much or rubbing tanning oil on Corzine's back.


The documents show that in early 2008, a memo written by then New York Fed President Tim Geithner to Bank of England chief Mervyn King looked into ways to "fix" Libor.[38][39] While the released memos suggest that the New York Fed helped to identify problems related to Libor and press the relevant authorities in the UK to reform, there is no documentation that shows any evidence that Geithner's recommendations were acted upon or that the Fed tried to make sure that they were. In October 2008, several months after Geithner's memo to King, a Barclays employee told a New York Fed representative that Libor rates were still "absolute rubbish."

TahoeBilly2012's picture

The quote means he did what his bosses wanted 100%. They wanted all the fat off the Libor rate and he gave it to them.

Four chan's picture

is that the first banker since madoff to go to jail?

Colonel Klink's picture

Hayes, funny it doesn't sound Jewish.  Imagine that!

ConfederateH's picture

I was going to say he probably deserved it for being such a stupid goy.

KnuckleDragger-X's picture

Well, one down and the rest of Wall St. to go......

ali-ali-al-qomfri's picture

a fall guy or a jumper, either you fall or we jump you.

NoDebt's picture

Justice has been served, the bad guy went to jail and this should send a strong message to the rest of them that they better not try this stuff again.  

I'm just glad we can finally put this whole sordid episode behind us and welcome a new day.  A day that signals the turning point back to more transparent and fair markets.

robertsgt40's picture

There fixed it!  Banks fined billions. Junior clerk swings from gallows. All good 

Panic Mode's picture

Publicity stunt. Just like governor of BoE needs to write a letter to Chancellor to explain the inflation above 2%. Do you really think the inflation movement not within the Chancellor's daily radar?? Think again.

OldPhart's picture

A 'conspiracy' implies more than one fucking dumb-ass, when's the next trial?

de3de8's picture

Can you say "fall guy"?

Conax's picture

Dumbass! He should have called himself "Goldblatt". He'd be a free man.

Dr. Engali's picture

At last! Justice is served!.The system has been cleaned up and I feel safe again!

Cacete de Ouro's picture

That fried chicken was 'fat finger' lickin' good

pods's picture

Another Nottajew goes down.


Glass Seagull's picture



His punishment:  10 years of "hard time" at Club Med.

NoWayJose's picture

But we will ban him from Cincinnati Reds home baseball games!

Trogdor's picture

His punishment:  10 years of "hard time" at Club Med

lol -That's right, bitch - you're going to have to put your own lotion on ....  Yeah, he'll end up at Lompoc where they have a "red line" instead of fences .... outside the tennis courts....  Chances are, he'll do 6-18 months and quietly be pardoned once the spotlight is off him.

ZeroPoint's picture

Can't the Honorable Jon Corzine help a brother out?


EscapeKey's picture

that was the final fraudulent behaviour executed by any of the big banks, and there shall be no more lawsuits.

This is it's picture

WHAAT! Not an Indian?

ZeroPoint's picture

They couldn't locate the banana vendor. He took the ONSTAR unit out of his cart.



q99x2's picture

I'd hire him on Q99X2 to run the rehab centers.

NoWayJose's picture

Now let's see how they can convict one guy of a 'conspiracy' while not going after anyone else!

NotApplicable's picture

"We've secretly replaced the fine justice they used to serve with pure bullshit. Let's see if anyone notices."

Panic Mode's picture

Yeah, right. It only takes one man to rig the LIBOR. Only people with single brain cell will believe this shit.

clade7's picture


Easy boys, he's got Aspergers...!

Dr. Engali's picture

I see his problem... His last name doesn't end in Stein.

pods's picture

He wouldn't have been arrested if his name was Jacob Notguiltyberg.


Dr. Engali's picture

That was a hard comment for me to make, but eventually patterns start to appear that can't be ignored.

pods's picture

I grew up in NY, and there were a lot of Jewish kids in my school. I was friends with a lot of them.  When I found out about how the money system works, and old world money, I was able to make the jew comments without feeling bad about disparaging the guys I knew.  They certainly weren't a part of it.


Edit: It's also almost comical. Like seeing a black guy driving a watermelon truck, or (my favorite) seeing an Italian Greaseball in an IROC Camaro.  They were a dime a dozen upstate.

Stereotypes allow us to laugh at ourselves.  Except that a drunk Irish guy poses less of a threat to me than someone gaining control of issuing my nation's currency.

fockewulf190's picture

" They were a dime a dozen upstate."

Sounds like Rockland county.   You should have checked out Nassau County during the 80´s for some real flava ; ).  Lots of posers.  LOTS.

pods's picture

Further north. Upstate.

Tons of Italians up there. And some Italian Retard Out Cruising (IROC).


fockewulf190's picture

Good read.  Didn´t think there would be many jewish peeps around there.  Learn something new everyday.

Jayda1850's picture

Much appreciated comment. I've come to realize the guilt piled on one for merely questioning those patterns is enough to keep the masses from recognizing things that are directly in front of their face. The more time goes on the more I believe as Ayn Rand did, that guilt is the greatest and most often used weapon to control others.

Dr. Engali's picture

If you want to learn who rules over you, simply find out who you are not allowed to criticize.


I would credit Voltaire, but there seems to be some dispute whether or not he made this statement. Regardless, in today's politically correct world. truer words where never spoken.

saints51's picture

LOL!!! I made the same comment above and didn't see yours. It is likely not good for you if we are thinking the same.

Dr. Engali's picture

I don't know who I'm more scared for, you or me.

Bitcoin Meiser's picture

So they found a fall guy. I heard that LIBOR manipulation was a commonplace daily practice before the crisis.

vq1's picture

Apparently his nickname was "rain man."


are you autistic?


yes.... yes he is. 

pods's picture

When the guilty verdict was handed down, the defendent was nearly speechless.

He could only mutter "10 minutes to Wapner" before being led out of court.


clade7's picture

Well, at least now we know what happened to Mr. Rogers sweaters