Hayes Says His Efforts to Move Libor Had No Effect on Profits

Tom Hayes
Former trader at banks including UBS Group AG and Citigroup Inc. Tom Hayes. Photographer: Simon Dawson/Bloomberg

Tom Hayes, the first trader to stand trial for rigging Libor, said his efforts to influence the rate over four years were ultimately unsuccessful.

Hayes, who worked at UBS Group AG and Citigroup Inc. in Japan, said analysis he has conducted since being fired in 2010 showed that there was no correlation between his personal profits and movements in yen Libor.

“The outcomes” of my requests “over the whole population of data was totally random,” Hayes, 35, told jurors during his second week of testimony in London Thursday. “I had no influence.”

Prosecutors say Hayes bullied and cajoled fellow traders and brokers to move the London interbank offered rate to make his positions more profitable. Hayes’s lawyers say the practice was widespread. He faces eight counts of fraud, each carrying up to 10 years in prison.

Hayes complained that the case against him failed to take into account the effect his “requests for favors” actually had on the subsequent submissions by traders at other firms. Traders made submissions against his interests more often than they helped him.

Hayes made more than 2,000 requests for moves in Libor, prosecutors have said.

“Why did you ask them then?” prosecutor Mukul Chawla asked Thursday.

When Chawla suggested that Hayes had benefited financially from his actions, the former trader responded that he been refused trading data he’d requested from his former employers that would allow him to answer him.

“I feel outraged that I am being asked questions I can’t adequately rebut because I haven’t been given the data I need,” Hayes said.

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