Tom Hayes (trader)
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| Tom Hayes | |
|---|---|
| Born | London, United Kingdom |
| Nationality | United Kingdom |
| Other names | Thomas Alexander William Hayes |
| Alma mater | University of Nottingham |
| Occupation | Trader, consultant |
| Employer | UBS |
| Known for | Libor Scandal |
| Criminal charge | Participating in Libor Scandal |
| Spouse(s) | Sarah Tighe |
Tom Hayes is a former trader for UBS and Citigroup who was arrested, tried, sentenced to fourteen years in prison for his role in the Libor Scandal, in which Libor rates were manipulated to produce favorable trading conditions.[1] His employers and prosecutors alleged that Hayes acted of his own accord, while Hayes asserted managers were aware of his actions, and even condoned them. Hayes was diagnosed with Asperger's syndrome before his trial.
Contents
Early life
Thomas Alexander WIlliam Hayes[2] was born in West London to Nicholas and Sandra Hayes, and initially grew up in Hammersmith.[3] He moved with his mother to Winchester after his parents divorced, where he was raised by his mother, and Timothy, his stepfather.[1] He attended The Westgate School, and, later, Peter Symonds College. A fellow student described him as an “incredibly smart geek”.[3]
After Peter Symonds, he attended University of Nottingham, and while there worked in a restaurant kitchen during summer breaks to pay for his tuition.[4] He graduated with a degree in mathematics and engineering, two years before Kweku Adoboli, a rogue trader who also worked for UBS.[4]
Career and education
In 2001, after time as an intern at UBS, he joined Royal Bank of Scotland's trainee program, at the interest rate derivatives desk.[1] After working for Royal Bank of Scotland as a junior trader,[5] he was headhunted by Royal Bank of Canada in 2004, and, upon moving there, he assumed greater responsibility.[1] After two years at RBS, he moved to UBS in late 2006.[4] Hayes was placed in the Tokyo office of UBS,[1] where he began making trades involving the discrepancies between the Libor rate and Japaneses interest rates.[4][6]
Hayes turned down an offer from Goldman Sachs in 2008, but in 2009, accepted an offer from Citigroup; the bank gave him a $3 million signing bonus.[6] In 2010, Hayes was fired by Citi for manipulating Libor rates. After being fired, he moved from Tokyo to England, where he day traded with his Citi bonus in order to replace his lost income.
Arrest and trial
On December 11th, 2012, Hayes was arrested by British authorities for his involvement in manipulating Libor rates, and on December 19th, he was charged by the United States for the same crime. In order to avoid extradition to and subsequent trial by and imprisonment in the U.S., Hayes initially cooperated with the Serious Fraud Office, providing eighty hours of interviews so as to be charged by the United Kingdom. After being charged, Hayes withdrew his offer of cooperation, intending instead to fight the charges levied by the SFO.[7] In response, the SFO narrowed the scope of their charges, so leaving less overlap between charges by American and British prosecutors, creating the possibility of a second trial in the United States.
During his trial, Hayes was accompanied by a court-appointed aide due to his autism. Throughout the trial, prosecutors used Hayes' SFO interviews to condemn him as greedy and corrupt. The defence attempted to illustrate that manipulation of Libor was both widespread and expected as part of Hayes' job description, with senior management as high up as the CEO aware of the tactic.
Conviction
In August of 2015, Hayes was sentenced to fourteen years in prison, to serve a minimum half of this sentence before being considered for early release.[8] The judge, Jeremy Cooke, indicated he wished to “send a signal” to traders involved in illegal trading, as the sentence was significantly harsher than those given to other individuals convicted of financial crimes, such as Nick Leeson.[8] Hayes has maintained his innocence through the trial process.[9]
Appeal
Judges, including Sir Brian Leveson, Elizabeth Gloster and John Thomas, Baron Thomas of Cwmgiedd later ruled this sentence unfair, and shortened it to eleven years, under the same parole conditions.[9][10]
Time in prison
Hayes has released letters concerning his time in prison.[11] In them, he described being held separate from other prisoners, for his protection, in a "segregation unit".[11] Hayes was placed on suicide watch, due to fears that he might engage in self-harm.
Personal life
Hayes is married to Sarah Tighe, a corporate lawyer in London. They have one child, Joshua. Hayes has mild Asperger's, which was diagnosed before his trial, at age thirty-five. He received several nicknames from his colleagues, including Rain Man and "Tommy Chocolate," in reference to his preference for hot chocolate over alcohol.[1][4][12]
See also
- Jérôme Kerviel: A French trader convicted of similar crimes.
References
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