Former Trader Sues UBS For $400 Million, Alleges Bank Made Him Fall Guy In Global Libor Scandal

Benzinga

Tom Hayes, cleared of Libor-rigging charges, is suing UBS for over $400M, alleging the bank framed him as the scandal’s mastermind to shield executives. His conviction was overturned after the UK Supreme Court ruled his trial unfair.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Tom Hayes, whose Libor-ringing conviction was overturned in July,

00:06has filed two lawsuits against UBS seeking over $400 million, according to Reuters.

00:11Hayes accused the Swiss Bank of malicious prosecution,

00:13claiming he portrayed him as the evil mastermind of the Libor scandal

00:16to divert attention from senior executives.

00:19He alleged UBS crafted a narrative that made him the perfect fall guy,

00:22while the Bank avoided criminal charges by paying $1.5 billion in settlements in 2012.

00:28Libor, once the benchmark for over $300 trillion in global financial products,

00:31was phased out in 2022, following widespread manipulation probes,

00:36led to $9 billion in fines, and 19 trader convictions.

00:40Hayes was initially convicted in 2015 for rigging Libor

00:43and had his conviction overturned in 2024 after the U.K. Supreme Court ruled his trial was unfair.

00:49U.S. charges were later dismissed. UBS declined to comment.

00:52For all things money, visit Benzinga.com.

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