Two bankers, Tom Hayes and Carlo Palombo, were convicted of manipulating LIBOR and EURIBOR benchmarks, respectively. Their convictions raised questions about the fairness of the legal system in Britain.
Hayes, a former employee at UBS and Citigroup, was initially sentenced to 14 years in prison for his role in manipulating LIBOR. He was later released in 2021 after serving part of his sentence.
Palombo, a former Barclays employee, was given four years in prison for fiddling EURIBOR. Like Hayes, he was also released in 2021.
The leniency of their sentences has sparked debate about the effectiveness of Britain’s legal system in punishing white-collar crimes. While some argue that the convictions demonstrate accountability, others see them as a miscarriage of justice.
The case highlights the complexities and challenges faced by law enforcement agencies in regulating financial markets. The fact that Hayes and Palombo were able to manipulate benchmarks without being caught for several years raises questions about the adequacy of regulatory oversight.
As Britain’s legal system grapples with these issues, it is essential to examine the underlying factors contributing to its shortcomings. Can the system be reformed to ensure greater accountability and fairness in sentencing? Only time will tell.
Source: https://www.economist.com/britain/2025/07/23/vindication-for-two-bankers-questions-for-britains-legal-system