Conservative MP Sir David Davis has called for a 'shake-up' of the judicial system after the Supreme Court quashed the convictions of two former traders in a rate-rigging case. Tom Hayes and Carlo Palombo were found guilty of manipulating Libor and Euribor rates in 2015 and 2019 respectively, but the Supreme Court ruled on Wednesday that judges had misdirected juries, leading to wrongful convictions.
Speaking at a press conference, Sir David described the men as 'scapegoats for the sins that led to the financial crisis' and accused banks and government agencies, including the Serious Fraud Office and Financial Conduct Authority, of collusion. He said the case highlighted the need for urgent reform, including the handling of expert witnesses and the rigidity of the appeals system.
In an 82-page judgment, Lord Leggatt, with whom the Supreme Court president and other justices agreed, said the history of the cases raised concerns about the effectiveness of the criminal appeal system in England and Wales. Sir David argued that the justices 'did not unpack' why the appeal system failed, adding that the judicial system 'needs a shake-up'.
Mr Hayes said he believed the trials became caught up in the politics of the financial crisis, with a 'big desire from institutions and politicians' for traders to go to prison. He defended the role of juries, calling them the 'last defensive barrier' against wrongful convictions, though he acknowledged they are not perfect.
Ben Rose, part of Mr Palombo's legal team, said the Supreme Court judgment offers a route for others convicted in similar circumstances to right the wrong done to them. He criticised the prosecution for a 'fundamental error' that allowed judges to override the jury's role, which he said should not happen in a country that abides by the rule of law.
