Tom Hayes, the trader accused of trying to rig a key interest rate behind trillions of dollars in financial deals, was allowed to keep a £2.2m bonus after he was sacked by his bank for “attempting to manipulate” the financial markets.
Southwark crown court heard on Tuesday how the 35-year-old former trader was allowed to keep the payment despite being ousted from his role at Citigroup in 2010, following an internal investigation into the rigging of the Libor interest rate.
In its letter dismissing Hayes, the bank wrote: “Citigroup has uncovered that you attempted to manipulate the Yen Libor and Tibor rates in order to benefit your trading position,” which it said was a clear breach of its code of conduct, “resulting in the possibility of serious regulatory actions”.
However, Citi added that it was not “exercising its right to demand repayment of Y292m [worth £2.2m at the time]” that it had paid Hayes when he joined the bank from rival UBS.
The evidence emerged on day five of Hayes’ trial, where he stands accused of eight counts of conspiracy to defraud between 2006 and 2010, which he denies. He has been diagnosed with mild Asperger’s syndrome and has been sitting in the well of the court during his trial rather than in the dock.
The prosecution alleges Hayes was motivated by greed and acted as the “ringmaster” in an enormous fraud to rig the benchmark Libor interest rate.
The case continues.
This article was written by Simon Goodley, for theguardian.com on Tuesday 2nd June 2015 14.51 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010