UK court quashes former traders’ rate-rigging convictions

The Court of Appeal in London has overturned the criminal convictions of five former Barclays financial traders who were accused of manipulating the Libor and Euribor interest rate benchmarks, according to a recent decision. This ruling comes as a follow-up to a landmark 2025 decision by the UK Supreme Court, which had previously overturned the convictions of two other ex-traders.

The appeals court stated that the Supreme Court's decision directly applied to these cases, determining the appeals. The manipulation of the London Inter-Bank Offered Rate (Libor) and its euro equivalent Euribor took place in the aftermath of the 2008 global financial crisis, leading to serious consequences, including prison sentences and massive fines for major banks.

Among those whose convictions were quashed are Jay Merchant, Jonathan Mathew, Philippe Moryoussef, Alex Pabon, and Colin Bermingham. Matthew expressed relief at the ruling, stating that the conviction had been a burden for the past decade, while Moryoussef highlighted the impact on his life, including the loss of his career and reputation.

The five individuals had served prison terms ranging from two to eight years, with Bermingham receiving a five-year sentence. The decision follows the Supreme Court's ruling in July 2025, which overturned the convictions of Tom Hayes and Carlo Palombo, both former traders, based on errors in jury instructions that rendered their convictions "unsafe".

The Serious Fraud Office (SFO) determined that this affected the cases of the five other individuals, and it decided not to oppose their appeals. The Libor, once a crucial benchmark in the financial world, was abolished at the end of 2024 following numerous scandals.