View more on these topics

Libor rigging ‘started in 2006’

A former UBS and Citi trader on trial for Libor-rigging began his scheme to manipulate the rate in late 2006 shortly after joining UBS, a court heard yesterday.

Thomas Hayes is the first person to be tried for the Libor-rigging scandal.

He has been accused of eight counts of conspiracy to manipulate the Libor rate.

The FT reports prosecutor Mukul Chawla QC told the jury that by early 2007, Hayes was enlisting traders at JPMorgan and Royal Bank of Scotland to help him influence the rate to make his trades more profitable.

Hayes began working with Roger Darin and Joachim Ruh, then traders at UBS who had oversight of the bank’s daily Libor submission, in 2006, and with Paul Glands and Stuart Wiley at JPMorgan in early 2007, according to emails shown to the jury.

In a January 2007 email to Glands, then a derivatives trader at JPMorgan, Hayes said: “Could you do me a favour and ask your cash guys to try and keep 3m [three month] libor up today . . . thanks.”

Glands responded: “WILL DO.”

The jury was also shown evidence that the submissions made by UBS and others to the daily calculation were frequently altered after Hayes requested changes.

The court heard that Hayes would reward brokers, who acted as his middlemen by changing the suggested rates in the emails they sent to rate traders, by giving them extra commission which served as “kickbacks, bribes”, Chawla said. ‎

Hayes denies the allegations and the trial continues.


Leader: Sub-1% fix is coming

Will we see the market’s first-ever sub-1 per cent fixed-rate mortgage this year? That is the question we asked readers in March. Back then the majority (59 per cent) said ‘No’, but Yorkshire Building Society’s new 1.07 per cent two-year fixed rate may cause a fair chunk of these people to reconsider. Figures from the […]


Letters: Encourage first-time buyers

Star letter: Prospect for first-time buyers is better than painted so let’s encourage them Earlier this month, Mortgage Strategy reported a KPMG study claiming that first-time buyers now needed a minimum of £41,000 to get on the housing ladder due to the growing gap between house prices and wages. KPMG head of housing Jan Crosby said […]


Osborne promises July Budget for ‘working people’

Chancellor George Osborne is set to deliver his second Budget of the year on 8 July following the recent Conservative election victory. Writing in The Sun earlier this month, Osborne pledged that the package of measures announced in the Budget would represent a “Budget for working people”. The Treasury is yet to spell out how […]


News and expert analysis straight to your inbox

Sign up

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now