- Noel Cryan described Hayes as bizarre, obsessive and psychotic
- Cryan is one of 6 brokers on trial for helping Hayes rig Libor
A former Tullett Prebon Plc broker accused of helping Tom Hayes rig Libor said he told the former UBS trader he’d help him manipulate the rate to get him off his back, but never actually followed through with it.
Noel Cryan, one of six brokers on trial in London, told prosecutors in a 2014 interview that he regularly told Hayes he would help because he was a huge customer, but in reality he did nothing. During two days of questioning at the Serious Fraud Office’s headquarters near Trafalgar Square, Cryan referred to Hayes as bizarre, obsessive, moody and, on several occasions, psychotic.
"I never ever spoke to anybody else at our place, or anywhere else for that matter about Libor manipulation," Cryan said in the interview read to jurors by prosecutors Thursday. "I never got out of my chair and I never went over and spoke to them. And at the end of the day he can’t see. He hasn’t got a camera in the office."
The 49-year-old Cryan is one of a half dozen brokers from ICAP Plc, Tullett Prebon and RP Martin Holdings Ltd. charged with conspiring to help Hayes rig the London interbank offered rate, a benchmark used to value more than $350 trillion of loans and securities. Hayes, a former trader at UBS Group AG, was convicted of manipulating Libor in August and sentenced to 14 years in prison.
Cryan, a former manager on the yen derivatives desk, was approached by Hayes in early 2009 and asked to persuade colleagues to tell clients that Libor was going higher or lower, depending on the trader’s demands, prosecutors said.
During the interviews, Cryan was asked by prosecutors to explain a series of chats in which he appeared to agree to help Hayes.
"Ok will do," Cryan wrote in one February 2009 chat after Hayes told him he needed low rates on two versions of the rate. "Just been over there," Cryan told Hayes later that morning.
When the benchmark moved in the direction Hayes wanted, Cryan told prosecutors he took the credit. His firm was rewarded with wash trades -- transactions that don’t effect markets -- worth tens of thousands of pounds.
Asked why he didn’t tell Hayes no, Cryan said he felt he had no choice.
"You’ve got to bear in mind who he was at the time, like I said he was paying a million pounds a month brokerage to Tokyo," Cryan said. "He was the biggest player out there by a country mile. And if I jeopardize the relationship I’m sacked. I’m gone."
The trial is in its sixth week. Hayes, who worked at Citigroup Inc. after UBS, is appealing both his conviction and the prison sentence.