33-year-old former UBS and Citigroup trader Tom Hayes has been charged with a variety of conspiracy offenses regarding his involvement in the Libor interest rate scandal. The derivatives trader has been charged with eight counts of conspiracy to defraud and will appear in a London courtroom on Thursday.
Hayes is one of several former UBS traders to have been charged with conspiracy to defraud. The trader, a British national based in a Tokyo trading office, was arrested in December 2012 as part of a joint US-UK effort to crack down on traders involved in the Libor conspiracy.
As well as the charges he faces in the UK, Hayes faces serious charges of wire fraud and anti-trust law violations in the United States. The US Department of Justice has taken an active role in the investigation into Libor interbank interest rate fixing, as many of the banks involved in the scandal maintained a large US presence.
Hayes worked for UBS for three years from 2006 until 2009, before being hired by Citigroup as a derivatives trader in 2009. His involvement in interest rate rigging started during his career at Citigroup, insiders claim, with Hayes reportedly being fired by the Manhattan-based bank for rate rigging at some point in 2010.
The derivatives trader also worked for Royal Bank of Scotland for two years from 2001 until 2003. UBS and RBS, two of Hayes’ former employers, have been fined a collective $2.5 billion during the past twelve months for their involvement in the scandal. Over one dozen banks remain under investigation and could face fines.
The US Justice Department claims that Hayes ‘globally impacted financial products tied to yen Libor’ during his career as a trader in Tokyo. He is accused of conspiring with brokers to manipulate the Libor rate, allowing him to generate large profits on his derivative bets.
