FCA sued by jailed Libor trader for ban

Tom Hayes was the first to be jailed for 11 years following appeals to his conviction for Libor manipulation.

A former UBS trader who was jailed for 11 years for Libor manipulation is suing the Financial Conduct Authority (FCA) over its decision to ban him from the industry. 

Hayes was sentenced to 14 years in prison in 2015, although this was reduced to 11 years after judges ruled the punishment was too harsh.

Court listings show Hayes filed a lawsuit against the FCA with London’s Upper Tribunal on 23 December last year.

His lawyer, Karen Todner, reportedly told Bloomberg the lawsuit is related to the FCA’s decision to ban him from the industry and he will represent himself in the case.

The Libor benchmark is used by global banks to set interest rates of the cost of lending to other banks and to price loans on products such as mortgages.

The FCA has issued a series of fines to large investment banks in relation to Libor and Euribor rigging.

In April 2015, Deutsche Bank was fined £227 million, in July 2014, Lloyds Banking Group received a fine worth £105m and in June 2012, Barclays was fined £59.5 million.

Hayes was the first to be convicted of Libor rigging and was found guilty of eight counts of conspiracy to manipulate Yen Libor throughout his time as a trader at UBS.

Three former traders at Barclays were convicted of manipulating Libor rates between 2005 and 2007 by submitting daily Libor estimates to the British Bankers Association that benefitted their trading strategies.

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