Libor Scandal Conviction Overturned as U.K. Supreme Court Cites Trial Misdirection

Tom Hayes, the former UBS and Citigroup banker who served over five years in prison for a Libor-rigging conviction now overturned by the U.K. Supreme Court, has reflected on the emotional and legal journey that led to his acquittal. The court ruled that the trial judge had misdirected the jury in a way that “undermined the fairness of the trial,” though it noted there was “ample evidence” to support a conviction. Hayes, 45, who received a 14-year sentence in 2012—a sentence reduced to 11 years on appeal—was released after serving five years in prison and four years on probation. His conviction, one of the most severe in the Libor scandal, was overturned on July 23, 2025, but Hayes said it took until July 26 for the reality to sink in, triggered by a final letter from his sister. “The last paragraph of it was, ‘I’m so proud of you, Tom. Here’s to never writing you a letter ever again. The end of an era. And what an end,’” he recounted, noting the emotional impact of the message [1].

Hayes’ case centered on the manipulation of the London Inter-Bank Offered Rate (Libor), a benchmark used globally for loans and mortgages. Prosecutors argued he led a network of traders to submit rates favoring his bank, while his defense claimed such practices were routine and not illegal. The Supreme Court’s decision highlighted procedural flaws in his trial but stopped short of fully exonerating him. Hayes criticized the ruling’s implication that “ample evidence” existed for a conviction, arguing that the Serious Fraud Office (SFO), which prosecuted him, would have pursued a retrial if such evidence were truly compelling. The SFO declined to retry the case, stating it would not “be in the public interest” [1].

The Libor scandal, which emerged after the 2008 financial crisis, saw 19 bankers convicted in the U.K. and U.S. for rate manipulation. Hayes, however, has framed his case as emblematic of systemic issues in post-crisis justice. He described feeling like a “scapegoat,” noting public and political pressure to hold bankers accountable after the crisis. “Getting a fair shake was impossible,” he said, referencing the global demand for accountability. He also criticized the SFO’s reliance on evidence from UBS, his former employer, as a conflict of interest, arguing that third-party law firms acting for banks and regulators often align too closely [1].

Hayes’ prison experience, he admitted, was isolating. Inmates initially misjudged him as a “pedophile or an undercover police officer” due to his long sentence. Despite a single altercation in high-security prison, he found safety in the less chaotic environment of maximum security. His time in prison led to personal transformation, including a conversion to Christianity and a focus on forgiveness. “I felt those weeds [of anger] have not been appearing quite so much since Wednesday,” he said of the Supreme Court’s decision [1].

Looking ahead, Hayes remains uncertain about his career. The U.K. Financial Conduct Authority recently lifted his lifetime ban from finance, but he has not committed to returning to the industry. Instead, he is advocating for other convicted bankers, with at least four already planning to appeal their cases following his acquittal. Privately, he seeks a simpler life: he recently spent a weekend with his father and son in St. Ives, a coastal town in Cornwall, and dreams of living by the sea with a dog [1].

Hayes’ public message emphasizes reevaluating priorities. “Don’t get obsessed about just trying to acquire more stuff and thinking this is a good way of measuring your quality of life, because it really isn’t,” he said, reflecting on his past as a high-earning trader. His ordeal, he insists, underscores the fragility of freedom and the dangers of prosecutorial overreach. “Don’t take your freedom for granted,” he urged, a sentiment now deeply personal [1].

Source: [1] Tom Hayes, the UBS trader who spent 5 years in prison unjustly convicted of rigging interest rates, describes what it’s like to be vindicated (https://fortune.com/2025/07/29/tom-hayes-ubs-libor-scandal-conviction-overturned/)