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UK Supreme Court quashes LIBOR/EURIBOR convictions: trading advantage not determinative in law; no 'single cheapest rate' test; genuineness for the jury (R v Hayes; R v Palombo)

Published on: 23 July 2025

Published by a LexisNexis Corporate Crime expert
Legal News
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Article summary

R v Hayes; R v Palombo [2025] UKSC 29

Background

The appellants, Tom Hayes and Carlo Palombo, challenged their convictions for conspiracy to defraud, in August 2015 and March 2019 respectively. The allegation was that, together with others, they sought to influence crucial benchmark interest rates underpinning financial markets: for Mr Hayes, the London Inter‑bank Offered Rate (LIBOR); and for Mr Palombo, the Euro Inter‑bank Offered Rate (EURIBOR). A benchmark is an interest rate designed to mirror the prevailing cost of borrowing within a market, providing an indicative snapshot at a given moment. Such a rate serves as a reference for numerous transactions, among them financial derivatives and similar arrangements. Contributing banks were required to provide the rate at which that institution (for LIBOR) – or a prime bank (for EURIBOR) – could obtain funds at a particular time. The submissions were then averaged and trimmed to produce the figure released for that day, which served as the published benchmark...

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