In a stunning legal reversal, two former City traders have had their convictions for manipulating critical financial benchmarks overturned by the Court of Appeal.
A Decade-Long Legal Battle Ends
The High Court ruling brings closure to one of the most high-profile financial misconduct cases stemming from the 2008 banking crisis. The defendants, who had been convicted in 2016, have maintained their innocence throughout the protracted legal proceedings.
Benchmark Manipulation Allegations
The case centred on accusations that the traders conspired to manipulate the London Interbank Offered Rate (LIBOR) between 2005 and 2009. This benchmark rate influences trillions in financial contracts worldwide, from mortgages to complex derivatives.
Prosecutors had alleged that the traders:
- Colluded with other banks to submit false rate estimates
- Attempted to influence submissions for profit
- Used electronic communications to coordinate their actions
Judicial About-Face
The Court of Appeal found that the original trial judge's instructions to the jury may have prejudiced the case. In their ruling, the judges stated there was a "real possibility" the jury might have reached different conclusions with different directions.
This decision follows:
- A 2019 referral by the Criminal Cases Review Commission
- Multiple appeals through the judicial system
- Growing scrutiny of financial sector prosecutions
Broader Implications
The overturned convictions raise fresh questions about:
- The effectiveness of financial sector regulation
- The challenges of prosecuting complex financial crimes
- The legacy of post-crisis investigations
The Serious Fraud Office, which led the original prosecution, acknowledged the court's decision while maintaining that the case was properly brought.
