In a stunning reversal, a former City trader has had his conviction for manipulating the Libor interest rate quashed, reigniting debates over accountability in the financial sector.
The Court of Appeal ruled that the conviction was unsafe, delivering a significant blow to regulators who had pursued the case as part of a wider crackdown on banking misconduct.
A Landmark Legal Decision
The trader, who cannot be named for legal reasons, was originally found guilty of conspiring to rig the London Interbank Offered Rate (Libor), a benchmark used to set trillions of pounds worth of financial contracts globally.
His legal team successfully argued that key evidence had been misinterpreted, leading to what they described as a "miscarriage of justice."
The Fallout Continues
This ruling comes years after the scandal first erupted, revealing widespread manipulation of interest rates by major banks. While several institutions faced hefty fines, individual prosecutions have been rare—and even rarer to see convictions overturned.
Experts suggest this case could set a precedent for other appeals linked to the Libor scandal.
Public and Market Reactions
The decision has drawn mixed reactions. Some see it as a necessary correction to an overzealous prosecution, while others fear it undermines efforts to hold financiers accountable.
"This isn't just about one trader," said a financial regulation analyst. "It raises bigger questions about how we police complex financial crimes."
