Supreme Court Overturns Libor Traders' Convictions

The UK Supreme Court has overturned the convictions of former traders Tom Hayes and Carlo Palombo for manipulating benchmark interest rates, including Libor and Euribor, citing unfair and inaccurate jury directions that deprived them of a fair trial. Hayes was originally sentenced to 14 years in prison, later reduced to 11 on appeal, and Palombo served four years; both had their previous appeals dismissed before reaching the Supreme Court. The court acknowledged there was sufficient evidence to convict, but the flawed jury instructions rendered the convictions unsafe. The Serious Fraud Office has announced it will not pursue a retrial. The decision concludes a decade-long legal saga and could affect other convictions for financial market manipulation. The ruling also highlights divergences between UK and US approaches to Libor-related prosecutions.