Tom Hayes and Carlo Palombo, two former City traders convicted of manipulating Libor and Euribor interest rates, have had their convictions quashed by the UK Supreme Court. The court ruled that their trials were unfair, citing concerns about the effectiveness of the English and Welsh criminal appeals system. Hayes, a former UBS trader, was the first banker jailed for manipulating Libor in 2015, initially receiving a 14-year sentence. Following their convictions, US courts overturned similar charges in 2022, leaving the UK as the only country to criminalize the actions. Hayes and Palombo maintained their innocence for a decade, arguing they were victims of miscarriages of justice and prosecuted to appease public anger following the 2008 financial crisis.

The Supreme Court's judgment is highly critical of the judges at their original trials and the Court of Appeal. The ruling represents a significant legal victory for Hayes and Palombo.

Impact Statement: This decision raises serious questions about the fairness of the original trials and the handling of the Libor scandal in the UK, potentially impacting future cases involving financial market manipulation.