Libor scandal: Former UBS and Citigroup trader Tom Hayes lost the best part of £1m on trading as he tried to raise funds to pay for his legal fees

Hayley Kirton
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The confiscation hearing is ongoing (Source: Getty)

Tom Hayes lost the best part of £1m trading to try to raise money to pay his legal fees, a court was told today.

Hayes, who was found guilty on eight counts of conspiracy to defraud last August for his role in manipulating Libor, has been attending a hearing at the Old Bailey since Monday to determine whether any of his assets should be confiscated under the Proceeds of Crime Act.

The items that the former UBS and Citigroup trader could be asked to part with are worth over £2m and include a house in Surrey valued at £1.7m, his wedding ring and his wife Sarah Tighe's wedding and engagement rings.

According to the Press Association, Tighe told the hearing today: "Tom had his breakdown. Tom felt he needed funds for legal fees. Tom started trading to do so. Tom, who had been an excellent trader, did not trade very well at the time. I trusted his judgment in these matters."

She recalled: "He came home one day and said 'it's gone'. I said 'what's gone'. He said 'all the money. All of it. All our money'."

The prosecution said that Hayes had the "best part of a million pounds" before he started trying to trade for his legal fees.

Yesterday, the ex-trader told the hearing how he had suffered a breakdown when the allegations about rate-rigging started to come in from both the US and the UK.

Hayes was originally sentenced to 14 years in prison, but this reduced to 11 years by the Court of Appeal last December. He had intended to appeal to the Supreme Court but this was blocked earlier this month.

The confiscation hearing is ongoing.

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