Judicial system needs ‘shake-up' after trader convictions, says Sir David Davis
Tom Hayes and Carlo Palombo were found guilty over benchmark interest rate rigging in 2015 and 2019 respectively, but had their convictions quashed at the Supreme Court on Wednesday.
The former UBS trader and the ex-vice president of euro rates at Barclays bank were said to have manipulated the London Inter-Bank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor).
Speaking at a press conference following the Supreme Court judgment, Sir David described the two men as 'scapegoats for the sins that led to the financial crisis'.
He said: 'The implications are far-reaching and of course have been devastating for those caught up in it.
'There were several other people convicted of rate rigging, dozens of others who were either prosecuted, acquitted or not prosecuted. Their lives were upended too.
'This scapegoating exercise happened as a result of collusion between the banks and government agencies, including the SFO (Serious Fraud Office) and FCA (Financial Conduct Authority) and we're not done with that.
'This scandal also highlights the need for urgent reform within our justice system on a range of issues – the handling of expert witnesses right through to the rigidity of the appeals system.'
In an 82-page judgment, with which Supreme Court president Lord Reed, Lords Hodge and Lloyd-Jones and Lady Simler agreed, Lord Leggatt said judges' misdirection to the juries had led to the men's wrongful convictions.
He said: 'The history of these two cases raises concerns about the effectiveness of the criminal appeal system in England and Wales in confronting legal error.'
Sir David said the Supreme Court justices 'did not unpack' why the appeal system fell into error in these cases.
He said: 'I think the judicial system needs a shake-up, and this is the latest demonstrator of it, and we will be returning to it in the future.'
Mr Hayes said he believes the trials of the two men became caught up in the politics of the financial crisis, adding that there was a 'big desire from institutions and politicians, acting in their own interest largely', for traders to go to prison.
Asked about his thoughts on what role juries play in cases like his and Mr Palombo's, he said it was a 'dangerous idea' for complicated fraud and financial cases to be heard only by a judge.
The former trader added: 'The jury is the last defensive barrier that every citizen in this country has between them and a wrongful conviction.
'And are juries perfect? No, they're not. Do they make mistakes? Yes, they do. And you know, it's the best of a whole load of options, none of which is perfect.'
Ben Rose, part of Mr Palombo's legal team, said Wednesday's Supreme Court judgment is 'likely to offer a route' by which others who have been convicted in similar circumstances 'can right the wrong that has been done to them'.
He also said there was a 'fundamental error' in the way the case was prosecuted and that the role of the jury was 'overridden and usurped' by the judges.
The lawyer added: 'That should not happen in a country that abides by the rule of law.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Finextra
27 minutes ago
- Finextra
Fintech in 2025: The Current Landscape and Future Outlook: By Luigi Wewege
As we approach the third quarter of 2025, fintech is no longer a disruptor on the margins, it has become a cornerstone of the global financial ecosystem. Recent figures from the World Economic Forum (WEF) highlight fintech's remarkable trajectory, with revenues surging by 21% year-over-year in 2024, significantly outpacing traditional banking's modest 6% growth. Profitability among public fintech companies has also markedly improved, with approximately 69% now generating profits, indicating the sector's shift toward sustained, scalable performance. Fintech Funding and Market Performance Global fintech funding remains robust, totaling $24 billion across nearly 2,600 deals in the first half of 2025, a 6% increase from the previous period, according to Innovate Finance. While markets in Asia and Europe thrive, the UK's fintech investment plateaued, suggesting regional variations in market dynamics. Notably, public markets reflect renewed investor confidence, exemplified by fintech giants like Coinbase entering the S&P 500 and eToro's successful IPO, raising over $600 million. Additionally, Barron's highlights SoFi's outstanding performance, with a 44% revenue increase and record loan originations, underscoring fintech's resilience and growth potential. Drivers of Fintech Growth The AI Revolution AI, particularly generative and agentic AI, is transforming fintech operations. From automating compliance processes and customer interactions to enhancing fraud detection, AI's integration into fintech operations is profound. India's fintech sector, leveraging AI to accelerate KYC processes and customer engagement, exemplifies this trend. Additionally, research into human-centered AI, prioritizing user experience alongside efficiency, is reshaping fintech's approach to innovation. Embedded Finance and Digital Infrastructure Embedded finance has become central to fintech's expansion, with financial services increasingly integrated invisibly into non-financial platforms. Real-time payments, automated invoicing, and B2B financial services are areas witnessing substantial growth. BCG's analysis confirms this shift, predicting significant expansion in fintech infrastructure and lending services, while consumer-focused fintech begins to saturate. Open Finance and Regulatory Evolution Open finance is rapidly gaining momentum globally, driven by new regulatory frameworks such as the EU's Financial Data Access (FIDA) and PSD3 updates. These changes extend data sharing to broader financial products beyond basic banking. However, tensions persist, notably in the US, where JPMorgan's proposed charges for data access via APIs raise significant concerns, potentially disrupting fintech innovation dependent on open data models. Crypto and Digital Assets Cryptocurrency and stablecoin adoption continue to grow, attracting substantial institutional investment. Fintech hubs such as Hong Kong have seen notable funding influxes, driven by increasing stablecoin licensing and investment enthusiasm. Yet, ongoing regulatory scrutiny underscores the complexity fintech faces in balancing innovation and compliance. Cybersecurity and Trust The fintech sector's growth brings heightened cybersecurity risks, demanding robust defensive strategies. Advances in blockchain-based zero-trust architectures and enhanced API security are becoming industry standards. Fintech companies emphasizing comprehensive cybersecurity frameworks will emerge as trusted, resilient leaders in the marketplace. The Road Ahead: Challenges and Opportunities As we enter Q3 2025, fintech stands at a pivotal juncture marked by accelerating innovation and escalating complexity. While scalability and profitability have significantly improved, regulatory challenges and market pressures remain substantial. In the immediate future, fintech is expected to undergo further consolidation through mergers and acquisitions, particularly targeting companies offering innovative financial infrastructure. The embedding of financial services in non-financial platforms will become standard, redefining customer journeys and creating new revenue streams. AI-driven automation and decision-making will increasingly permeate fintech services, elevating efficiency but requiring careful oversight to maintain trust. Simultaneously, regulatory frameworks will evolve, demanding fintech firms adapt to stringent standards without compromising innovation. Thoughts on What is Coming Looking toward the close of 2025 and beyond, fintech's future success hinges on navigating regulatory uncertainties, optimizing embedded financial services, harnessing AI responsibly, and prioritizing cybersecurity. Companies able to balance innovation with operational excellence and regulatory compliance will dominate the fintech landscape, shaping the financial services sector profoundly in the coming years. About the author: Luigi Wewege is President of Caye International Bank, awarded as one of the leading banks in the Caribbean and Central America. During his tenure at the bank, Luigi has been recognized for his turnaround efforts at Caye, growing it into the largest international bank in Belize by total deposit size. He is a regular speaker and contributor for several media publications. He is an accomplished multi-publication author, including The Digital Banking Revolution (now in its third edition). Wewege has co-authored economic research presented before the United States Congress and has been published in The Journal of Applied Finance & Banking. Outside of the bank, Luigi serves as an Instructor for the FinTech School in California and sits on multiple international advisory boards. Wewege earned an MBA in International Business from the MIB Trieste School of Management in Italy and a Bachelor's Degree in Business with honors from the University of Missouri-St. Louis with a triple major in Finance, International Business, and Management.
Sky News
28 minutes ago
- Sky News
Inside Jeremy Corbyn's new party and the battle for leadership
Zarah Sultana and Jeremy Corbyn may be the figureheads of a new left-wing party, but already there is a battle over leadership. The confusion behind the initial launch speaks to a wider debate happening behind closed doors as to who should steer the party - now and in the future. Already, in the true spirit of Mr Corbyn's politics, there is talk of an open leadership contest and grassroots participation. Some supporters of the new party - which is being temporarily called "Your Party" while a formal name is decided by members - believe that allowing a leadership contest to take place honours Mr Corbyn's commitment to open democracy. 5:51 They point out that under Mr Corbyn's leadership of the Labour Party, members famously backed plans to make it easier for local constituency parties to deselect sitting MPs - a concept he strongly believed in. His allies now say the former Labour leader, who is 76, is open to there being a leadership contest for the new party, possibly at its inaugural conference in the autumn, where names lesser known than himself can throw their hat into the ring. "Jeremy would rather die than not have an open leadership contest," one source familiar with the internal politics told Sky News. However, there have been suggestions that Ms Sultana appears to be less keen on the idea of a leadership contest, and that she is more committed to the co-leadership model than her political partner. Those who have been opposed to the co-leadership model believe it could give Ms Sultana an unfair advantage and exclude other potential candidates from standing in the future. 2:18 One source told Sky News they believed Mr Corbyn should lead the party for two years, to get it established, before others are allowed to stand as leader. They said Ms Sultana, who became an independent MP after she was suspended from Labour for opposing the two-child benefit cap, was "highly ambitious but completely untested as leader" and "had a lot of growing into the role to do". "It's not about her - it's about taking a democratic approach, which is what we're supposed to be doing," they said. "There are so many people who have done amazing things locally and they need to have a chance to emerge as leaders. "We are not only fishing from a pool of two people. "It needs to be an open contest. Nobody needs to be crowned." 1:22 While Mr Corbyn and Ms Sultana undoubtedly have the biggest profiles out of would-be leaders, advocates for a grassroots approach to the leadership point to the success some independent candidates have enjoyed at a local level - for example, 24-year-old British Palestinian Leah Mohammed, who came within 528 votes of unseating Health Secretary Wes Streeting in Ilford North. Fiona Lali of the Revolutionary Communist Party, who stood in last year's general election for the Stratford and Bow constituency, has also been mentioned in some circles as someone with potential leadership credentials. However, sources close to Mr Corbyn and Ms Sultana downplayed suggestions of any divide over the leadership model, pointing out that their joint statement acknowledged that members would "decide the party's direction" at the inaugural conference in the autumn, including the model of leadership and the policies that are needed to transform society. A spokesperson for Mr Corbyn told Sky News: "Jeremy will be working with Zarah, his independent colleagues, and people from trade unions and social movements up and down the country to make an autumn conference a reality. "This will be the moment where people come together to launch a new democratic party that belongs to the members."
The Guardian
an hour ago
- The Guardian
Ukraine war briefing: death toll from Kyiv strike rises to 31 as Russia accelerates military advance
The death toll from Russia's worst airstrike of the year on Ukraine's capital rose to 31 on Friday after rescuers recovered more than a dozen more bodies from the rubble of a collapsed apartment block in Kyiv overnight. A two-year-old was among the five children found dead after Thursday's Russian drone and missile attack, the Ukrainian president, Volodymyr Zelenskyy, said on Friday, announcing the end of the rescue operation. A total of 159 people were wounded in the strikes, which saw Russia launch more than 300 drones and eight missiles early on Thursday. The EU foreign policy chief, Kaja Kallas, described Thursday's attacks as 'depraved' and posted a picture of the bloc's flag at half mast. 'More weapons for Ukraine and tougher sanctions on Russia are the fastest way to end the war. Getting more air defences to Ukraine fast is our priority,' she added in a post. Zelenskyy has been appealing to allies for more air defence systems and on Friday, Germany said it would soon start delivering two more US-made Patriot launchers to Ukraine. Germany has already delivered three Patriot systems to Ukraine since the start of Russia's full-scale invasion in February 2022. Russia's military advance in Ukraine accelerated for a fourth straight month in July, according to AFP's analysis of data from the US-based Institute for the Study of War. From August 2024 to July 2025, the Russian army captured nearly 5,900 sq km, compared with 1,360 sq km in the previous 12 months. In July, the Russian army took 713 sq km of Ukrainian territory, while Ukraine reclaimed 79 sq km. Nearly three-quarters of Russian advances in July were in the eastern Donetsk region. Moscow fully or partially controlled 78% of the region at the end of July, compared with 62% a year ago. About 31% of this region was already under the control of pro-Russian separatists before the start of Russia's full-scale invasion. Donald Trump has said that he deployed nuclear-capable submarines to the 'appropriate regions' in response to a threatening tweet by Russia's former president Dmitry Medvedev. In a post on Truth Social on Friday, Trump wrote that he had decided to reposition the nuclear submarines because of 'highly provocative statements' by Medvedev, who had earlier said Trump's threats to sanction Russia and a recent ultimatum were 'a threat and a step towards war'. Vladimir Putin has said he wants a 'lasting and stable peace' in Ukraine but gave no indication that he is willing to make any concessions to achieve it. The Russian president told journalists on Friday that a peace would need to be built on 'solid foundations that would satisfy both Russia and Ukraine, and would ensure the security of both countries'. Seemingly referencing Trump's comments that he was 'disappointed' with Putin, the Russian leader added: 'All disappointments arise from inflated expectations.' Europe must start seeing the Ukrainian military as a European army, the prominent Russian opposition activist Ilya Yashin told hundreds of Russian exiles in Serbia on Friday. 'The Ukrainian army is not only protecting Ukraine, it is protecting Europe from Russian aggression,' he said in a speech at a Belgrade concert hall. Yashin was imprisoned in 2022 for criticising Russia's invasion of Ukraine and released last year. Between February 2022 and 2024, more than 74,000 Russians registered for temporary residence in Serbia, according to the latest interior ministry data.
