Unraveling the Rate-Rigging Scandal: What’s Next for Quashed Convictions?

After a decade long struggle, two former City traders, Tom Hayes and Carlo Palombo, have had their rate-rigging convictions, linked to the Libor scandal, overturned by a court. Originally imprisoned for manipulating interbank interest rates during the financial crisis, their recent legal victory opens up a series of implications and inquiries into the justice system’s handling of such high-profile cases.

In the UK, convicted individuals whose sentences are quashed due to a miscarriage of justice can apply for compensation; however, the process is not straightforward. Compensation eligibility hinges on whether the prior conviction was deemed “unsafe” and if new evidence can establish their innocence beyond reasonable doubt. Hayes, reflecting on his situation, expressed doubts about receiving any support from the British government, feeling resigned to his fate.

Looking ahead, there is potential for other traders convicted in the same scandal to follow suit. Seven others previously incriminated are likely to challenge their sentences, facilitated by the recent favorable ruling for Hayes and Palombo. The pathway for these appeals may prove less complex than Hayes’ prolonged efforts over seven years to regain his freedom.

Moreover, calls for a public inquiry regarding the bankers’ actions and the subsequent judicial proceedings are gaining traction among lawmakers like David Davis, John McDonnell, and Lord Tyrie. They seek to investigate the pressure from senior bank officials which might have influenced the manipulation of interest rates.

A pivotal concern arises from the Serious Fraud Office’s reliance on investigations assisted by external lawyers from firms associated with the banks in question, raising ethical questions about the integrity of these probes.

The backdrop of these events highlights systemic issues where judiciary functions may intermingle with corporate interests, portraying a complicated aftermath of the financial crisis. As experts and politicians call for clarity, the unfolding situation presents a critical evaluation point of not only the financial system’s past but also its structural integrity moving forward.