The first trial of a trader accused of fraudulently attempting to manipulate key interest rate benchmark Libor began in Southwark yesterday.
Prosecutors said Tom Hayes, a 35-year-old former UBS and Citigroup trader, was “greedy” and used his position over several years to engage in the “dishonest rigging of Libor”.
Hayes, who pleaded not guilty in December 2013, faces eight charges of conspiracy to defraud others.
The Serious Fraud Office (SFO) claims he was the ringleader in a widespread web of traders and brokers from at least 10 institutions who conspired to submit false numbers into the Libor system, to benefit their trading books.
In return for boosting his profits, the SFO said that brokers would receive kickbacks such as extra business to boost their fee income.
Prosecuting lawyer Mukul Chawla said that the activity began when Hayes worked at UBS in 2006. He left the bank in late 2009, and moved to work at Citi in 2010, but was fired after a few months, Chawla said.