Tom Hayes, a former UBS and Citi derivatives trader, appeared in a London court accused of conspiracy to defraud in connection with a global investigation into the Libor interest rate rigging scandal.
British prosecutors charged him with eight counts of conspiracy to defraud by allegedly colluding with employees from at least 10 institutions including UBS, RBS, Deutsche Bank, Citi, JPMorgan, brokers ICAP, Tullett Prebon, RP Martin, HSBC, Rabobank and others.
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Hayes has also been charged by the U.S. Justice Department, which is running a parallel criminal investigation
The charges come almost a year after Barclays became the first of three banks fined as part of global regulators’ probes into the London interbank offered rate and other benchmarks.
Early this week, Britain’s Serious Fraud Office (SFO) pressed criminal charges against Hayes for his alleged role in rigging the global Libor rate.
Hayes joined UBS in 2006 and worked at the Swiss lender until 2009, when he joined Citigroup. He was dismissed by Citigroup less than a year later for involvement in suspected rate-rigging. He worked at RBS from 2001 to 2003.
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By GlobalDataThe scandal has to date seen regulators fine three banks a total of US$2.6 billion and prosecutors and police charge two men, including Hayes.
In early June, it was reported that London may be stripped of its control over the scandal-hit Libor lending rate by the European Commission who are considering handing over supervision to the Paris-based European Securities and Markets Authority (ESMA).
Britain’s financial watchdog, Financial Conduct Authority (FCA), also said it was gathering information on potential manipulation of benchmark foreign-exchange rates, amid new allegations that traders at banks are rigging rates to maximise profits.
