Currency trader illegally made US$300 million for UBS Swiss Bank – He goes to jail, the big-shots keep their jobs and bonuses!!

UBS Swiss Bank Fraud

“But so far, no senior executives have been prosecuted in a scandal that helped shred public faith in an industry and has cost some of the world’s biggest banks and brokerages $9 billion in fines and seen 21 people charged…”

Oh my children; gather round and Daddy will tell you a story of how the world really works…

In 2006 Tom Hayes was an intelligent nice young man of 25 years old who loved the numbers of finance; so much so that UBS Swiss Bank hired him to be a yen derivatives trader for their Tokyo office.

And Tom did an excellent job for UBS – earning the Swiss bank over US$300 million dollars in three years and 45,000 trades. YIKES!

Excellent job except for one thing… Tom was conspiring with other people to rig the markets, and he sent out thousands of emails to do it.

Did his bosses know? Ha! Does cheese go well on toast?

Now Tom and a few other low level people will probably be going to jail.

But the bosses? Everything be so fine, just fine. UBS and Citigroup paid fines, but none of those bosses will go to jail or lose their jobs.

Children… this is the way the world is.

Same same in Barbados. Everywhere.

Say… do we have branches of UBS or Citigroup in Barbados? Really? Well…

Insight – How Libor whiz Rain Man became ‘the guy everyone was going to blame’

He was so obsessed with the numbers that he did not see his downfall coming.

The first trader convicted by a jury in the global Libor rate-rigging scandal was a maths whiz nicknamed “Rain Man”, who slept as an adult under a superhero duvet cover he had owned since he was eight. 

Tom Hayes, found guilty of eight counts of conspiracy to defraud, told the court he never thought he had been dishonest.

During a nine-week trial at London’s Southwark Crown Court, the 35-year-old former yen derivatives trader for the Tokyo offices of UBS and Citigroup said he had always been driven to do a good job. He wanted to gain “an extra edge”, he said, and his bosses had condoned methods that were common practise at the time.

That included influencing other traders and brokers to nudge Libor, the London Interbank Offered Rate, used as a benchmark for $450 trillion (£288.2 trillion) in financial contracts worldwide.

Mukul Chawla, the gravelly-voiced veteran counsel for the prosecution, called Hayes the ringleader in a conspiracy of around 25 people to rig Libor.

Hayes said he had been singled out to take the fall.

“UBS had thrown me under the bus. I was up against two $50 billion organisations (UBS and Citi), the DOJ, the FSA (Britain’s then financial regulator), you name the acronym.

“I was the guy everyone was going to blame.”

Some of those named in Hayes’s case have been charged and others remain under investigation, Chawla said…

… continue reading this story at Reuters UK


Filed under Barbados, Consumer Issues, Corruption, Crime & Law, Offshore Investments

12 responses to “Currency trader illegally made US$300 million for UBS Swiss Bank – He goes to jail, the big-shots keep their jobs and bonuses!!

  1. Hammer them well

    Can’t fight the system. Little people set up all the time. Big people never go down.

    That is reality. Good article BFP. God bless you.

  2. Galligar F

    Guy went for 14 YEARS!!!!

    The bosses… zip.

    What a travesty. It is what it is.

  3. Galligar F

    Here is the sentencing article at BBC:

  4. Green Monkey

    The New York Fed Has Contracted JPMorgan to Hold Over $1.7 Trillion of its QE Bonds Despite Two Felony Counts and Serial Charges of Crimes

    By Pam Martens and Russ Martens: November 3, 2014

    In addition to holding the MBS, JPMorgan also has a contractual agreement to exercise discretion (its own judgment) in trading the surplus cash that sits in the New York Fed’s cash account. While JPMorgan is restricted to holding collateral backed by U.S. government securities for these cash trades in Repurchase Agreements, its approved list of counter parties include global banks variously charged with rigging the international interest rate benchmark known as Libor, money laundering, aiding and abetting tax evasion, and defrauding clients.

    During the period in which JPMorgan has been the trusted custodian of a major part of the assets of the U.S. central bank, it has been repeatedly charged with serial crimes. In January of this year, JPMorgan paid $2.6 billion and made history in being the first Wall Street mega bank to be charged with two felony counts and receive a deferred prosecution agreement. The crime was aiding and abetting the Madoff fraud – the largest Ponzi scheme in the history of modern finance. In September of last year, JPMorgan settled its London Whale scandal for $920 million in penalties. That case involved its use of depositors’ savings to gamble in exotic derivatives in London, lose at least $6.2 billion of those deposits, and initially misstate the amount of losses to its regulators.

    There has also been a stream of other charges and settlements by JPMorgan for rigging electric rates, abusing credit card customers, and rigging Libor. According to press reports, another charge and settlement is ahead involving the rigging of foreign currency exchange trading – potentially as soon as this month.


    Senators Sherrod Brown and Elizabeth Warren are pushing for Senate hearings on the New York Fed’s role as a regulator. Carmen Segarra, a bank examiner fired by the New York Fed after refusing to change her examination that was critical of Goldman Sachs, recently had her internal tape recordings released through ProPublica and public radio’s “This American Life” exposing the New York Fed as a watchdog with no bark or bite when it comes to powerful Wall Street banks.

  5. Green Monkey

    Where Candidates Fear to Tread
    by JH Kunstler

    The most dangerous rackets of our time are those running through banking and finance. The superficially genial President Obama has done absolutely nothing to defend the public against gross financial misconduct and pervasive accounting fraud. His justice department has failed to prosecute widespread criminality in banking and his regulators at the Securities and Exchange Commission and other agencies have sat on their hands for six years while markets are hijacked and manipulated. This behavior gives credence to a greater conspiracy between the governments, the “systemically important” banks, and the Federal Reserve to prop up a Potemkin financialized economy for political cover and favor at the expense of crumbling real economy. A potential president has got to swear to defend the public against these institutional turpitudes. A president can lead the way by proposing to reinstate the Glass-Steagall act and by directing the justice department to break up the “systemically important” banks before they implode the entire operating system of the global economy.

  6. Party Animal

    I think its time that all Governments Worldwide should ask that the Swiss Banks declare all big deposits be exposed, particularly Politician accounts.
    These monies should be sent back to the Countries it belongs.
    It is time these crooks and thieves be exposed and thrown into Jail

  7. Jim

    Barbados benefits from many trade/banking agreements but we don’t have conflict of interest rules or transparency FOI etc etc etc.

    How does Barbados continue with its rating and perception when we refuse to implement anti-corruption legislation?

  8. Green Monkey

    Documentary: Who Is Responsible for the World’s Biggest Financial Collapse?

    This is the first of a four-part investigation into a world of greed and recklessness that led to financial collapse in 2008.

    The crash of September 2008 brought the largest bankruptcies in world history, pushing more than 30 million people into unemployment and bringing many countries to the edge of insolvency. How did this happen?

    In this first episode of “Meltdown,” we hear about four men who brought down the global economy: a billionaire mortgage-seller who fooled millions; a high-rolling banker with a fatal weakness; a ferocious Wall Street predator; and the power behind the throne.

  9. Green Monkey

    Part 2 of the above documentary can be viewed here:

    Parts 3 & 4 should show up in the list of videos you can click on to view on the right hand side of the page

  10. Green Monkey

    Global Derivatives: $1.5 Quadrillion Time Bomb
    By Stephen Lendeman

    Along with credit default swaps and other exotic instruments, the total notional derivatives value is about $1.5 quadrillion – about 20% more than in 2008, beyond what anyone can conceive, let alone control if unexpected turmoil strikes.

    The late Bob Chapman predicted it. So does Paul Craig Roberts. It could “destroy Western civilization,” he believes. Financial deregulation turned Wall Street into a casino with no rules except unrestrained making money. Catastrophic failure awaits. It’s just a matter of time.

    Ellen Brown calls the “derivatives casino…a last-ditch attempt to prop up a private pyramid scheme” – slowly crumbling under its own weight.

    For years, Warren Buffett called derivatives “financial time bombs” – for economies and ordinary people.

  11. Green Monkey

    Deflation, Debt and Gravity
    by Raúl Ilargi Meijer, The Automatic Earth Blog

    We’re ignorant, we deny, we prefer not to think about it. The Greeks used to be like that, but they no longer have that choice. And we won’t for much longer either.

    The reason why Greece is where it is today, and why we will all be there tomorrow, we can by now for good reason call ‘deceptively simple’. That is to say, the global banking system that orchestrated the financial crisis refuses to take the losses on its extravagant bets, and it has the political clout to get its way, all the way. That’s all you need to know.

    The losses are therefore unloaded upon the citizens of our respective nations. But the losses are far too massive for those citizens to bear. They, or rather we, will see our societies stripped of most things, most of the social fabric, that hold them together. Any service that costs money will be cut, progressively, until there’s very little left.

    It happened in Greece, and it will happen all over the world. Mind you, this is nothing new; third world nations have undergone the same treatment for decades, if not forever. Disaster capitalism wasn’t born yesterday. What’s new is that it now takes place in the supposedly well-off part of the world, in this case the European Union. And it will spread.


    The whole system of bailouts, be it in Greece or in the US, was never anything else than a transfer of public money to private interests, with the express aim of making good on the lost wagers of that private sector. With impunity, no less.

    And no, the losses have not disappeared. Nor have they been written down. They have instead been transferred to fester in dark vaults, hidden behind swaps and other derivatives, and on central bank balance sheets. But that won’t last either.

  12. Green Monkey

    Who Runs the Fed?

    By Timothy A. Canova, Professor of Law and Public Finance, Nova Southeastern University, Fort Lauderdale, Florida

    The Federal Reserve expanded its support for Wall Street in other unconventional ways that also suggested a bias in favor of the private financial interests that sit on the Fed’s own governing boards. In the fall of 2008, the Fed made an emergency equity investment in American International Group (AIG), taking a 79.9 percent interest in the global insurance conglomerate, all to make sure that AIG continued paying off on its credit default swaps (CDS) to Goldman Sachs and other counterparties. These swaps provided insurance against a downturn in the housing and mortgage markets. However, they also allowed Goldman Sachs and other speculators to bet against the same toxic mortgage-backed securities that they had created and already sold off to unsuspecting clients and investors. By rescuing AIG, an extraordinary measure that tested the limits of its authority, the Fed was no longer simply the lender of last resort: it was now the “buyer, dealer, and gambler of last resort,” serving as the gambling house to prop up the market for derivative contracts and to cover the wagers and losses of the global casino.