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UK regulator drops cases against Libor scandal traders after court ruling

Published by Global Banking & Finance Review

Posted on July 25, 2025

1 min read

· Last updated: January 22, 2026

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UK regulator drops cases against Libor scandal traders after court ruling
financial regulator Financial Conduct Authority
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(Reuters) -Britain's financial regulator said on Friday that it was dropping proceedings against Tom Hayes and revoking Carlo Palombo's ban from the financial service industry, after the country's top

UK Regulator Ends Cases Against Traders Involved in Libor Scandal

Outcome of the Libor Scandal Cases

(Reuters) -Britain's financial regulator said on Friday that it was dropping proceedings against Tom Hayes and revoking Carlo Palombo's ban from the financial service industry, after the country's top court overturned convictions of both former traders.

Background on Tom Hayes

Hayes, the first trader ever jailed for interest rate rigging, became the face of the global Libor scandal. He challenged his conviction at the Supreme Court, along with Palombo, a former Barclays trader who was found guilty in 2019 of manipulating Euribor, Libor’s euro equivalent.

FCA's Decision Explained

The Financial Conduct Authority (FCA) said it would take no further action against either individual.

(Reporting by Shanima A in Bengaluru; Editing by Tasim Zahid)

Key Takeaways

  • The UK financial regulator dropped cases against traders involved in the Libor scandal.
  • Tom Hayes and Carlo Palombo's convictions were overturned by the Supreme Court.
  • The FCA will not pursue further action against the traders.
  • Tom Hayes was the first trader jailed for interest rate rigging.
  • Carlo Palombo was previously banned from the financial industry.

Frequently Asked Questions

What is the Libor scandal?
The Libor scandal involved the manipulation of the London Interbank Offered Rate (Libor), which is the average interest rate at which major global banks lend to one another. It led to significant legal and financial repercussions for those involved.
What is the Financial Conduct Authority (FCA)?
The Financial Conduct Authority (FCA) is a regulatory body in the UK responsible for overseeing financial markets and protecting consumers. It ensures that financial firms operate fairly and transparently.
What is interest rate rigging?
Interest rate rigging refers to the illegal manipulation of interest rates by banks or financial institutions to benefit their trading positions, often leading to significant market distortions.
What is a court ruling?
A court ruling is a decision made by a judge or court regarding a legal case. It can determine the outcome of disputes, including those involving financial regulations and penalties.

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