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
Yahoo
26 minutes ago
- Yahoo
‘No sign' Trump tariffs on Scotch whisky will increase, says Ian Murray
The Scottish Secretary of State has said 'there is no sign at the moment' tariffs imposed on Scotch whisky will increase to 25% as he expressed his 'disappointment' in the current US deal arrangement for the sector. Ian Murray also told BBC Radio Scotland's Sunday Show that Donald Trump's admiration of Scotland should be 'exploited' for the sake of the 'national interest'. The US President has so far agreed a 10% tariffs on UK exports and 15% on EU ones. Across the Scotch whisky sector, there are concerns that this deal - which is believed to be costing the industry £4m a week - will lead to significant harm for businesses. READ MORE: Scotch whisky hopes rise after Trump pledges to talk tariffs Trump talks of 'great love' for Scotland during visit 'Scotland must switch whisky exports from America to Canada' The Secretary of State is currently leading a UK Government delegation to Germany this week to 'increase economic ties' with the EU. Mr Murray said it was important to point out that trade deals with the likes of EU and India, the largest growing economy in the world, will provide a 'great opportunity' for Scotch whisky. Yet, earlier on the programme, Scotland's public finance minister Ivan McKee warned that 25% tariffs could be imposed next year as a deal previously reached with America on temporary duty reliefs could be lifted. Between October 2019 and March 2021, the tariff imposed as a result of the Boeing dispute resulted in £600 million in lost Scotch whisky exports. A deal was eventually reached in 2021 to take the 25% tariff off the industry. However, Mr McKee said: 'That was done on a temporary basis and that runs out next year so it's really important that it is taken out of the picture permanently because when that was in place, that was a significant hamper to Scotch whisky exports. 'As the UK Government concludes the deal with the US Government, we would expect it to be 10% tariffs on whisky which is clearly something we wish wasn't there.' Mr McKee said he would hope this was not re-imposed but added: 'There's nothing but unpredictability when it comes to Donald Trump and tariffs so who knows what's happening.' However, Mr Murray insisted it is unlikely this would happen. Asked how likely it would be for 25% tariffs to be re-imposed on Scotch whisky, Mr Murray said: 'There is no sign of that at the moment.' He added: 'It's 10% tariffs on Scottish whisky. Yes, we would rather that was as close to zero as possible but ten percent is as low as anybody else in the world right now." Mr Murray said the Prime Minister Keir Starmer has been able to 'reset international relationships' to do a deal with the US on tariffs. He said: 'Many, including the First Minister, wanted us to walk away from the US president but it was really important in the national interest and in the Scottish national interest for us to have that relationship to do that deal. '10% is the lowest tariff in the world. We did the first trade deal it saved the steel industry, the car industry. 'Yes, 10% tariffs on Scotch whisky is disappointing and we will continue to champion the cause for the really unique position of whisky. "We don't want it to be subject to historic trade wars as it has been in the past. It is a really thriving industry.' Speaking about the US president's visit to Scotland, Mr Murray said it was a 'great privilege' to when he landed in the country last week. He said he was in 'no doubt' of Mr Trump's 'great love of Scotland', adding: 'That is something we should exploit in the national interest.' During his visit to Scotland, President Trump promised to 'take a look' at tariffs on Scotch whisky during his meeting with Starmer as he said he wanted Scotland "to thrive". Since then, however, no changes have been made to the current arrangement. Speaking on the radio today, the Secretary of State also said Mr Trump suggested he should join him at the press conference beside Air Force One when he arrived in the country, however, the Secretary of State declined. Mr Murray said: 'He did tap me on the shoulder and said, 'let's go and do this press conference together' which I declined…because it's not for me to do so. 'I don't think it was for me to speak to the American press pack who is travelling on Air Force One with the President of the United States.'
Yahoo
26 minutes ago
- Yahoo
Why Keir Starmer is outdoing the EU when it comes to dealing with Donald Trump
As Ursula von der Leyen left Scotland last weekend with the ink still drying on the US/ EU trade deal she had just signed with Trump, the reception in European capitals was beyond gloomy. After all the posturing, threats of counter tariffs, Ms von der Leyen had signed a deal which was roundly criticised by a long line of leaders including German chancellor Friedrich Merz, who said the agreement would "substantially damage" his nation's finances, and French prime minister Francois Bayrou, who described it as tantamount to "submission". Hungary's Viktor Orban, an outspoken critic of the EU leadership, said Trump "ate von der Leyen for breakfast". But there was one question which diplomats and government heads were asking all over Europe: 'How did Keir Starmer get a better deal than us?' Not only is the EU still paying 15 per cent tariffs, but it now has agreed to spend billions purchasing energy resources from the US. This compared to the 10 per cent tariffs for the UK. 'Featherweight' Ursula von der Leyen A seasoned diplomat of an EU member state told The Independent that there was 'anger' about what had happened. The fact that the UK 'appears to be rewarded for Brexit' also really stung. But what was more worrying was that the EU supposed collective muscle had failed to produce the goods. Much of the blame has fallen on Ms von der Leyen herself and she is now being referred to as 'the featherweight'. 'She was just not strong enough to take on Trump,' said the diplomat. 'People are just remembering that she was a weak defence minister in the German government, now she is weak as a negotiator.' An insider at Trump's Turnberry golf resort described how the US president was 'in no hurry' to conclude the talks on Saturday. 'He wanted to spend more time talking to paying guests and getting pictures with them,' The Independent was told. 'He was incredibly gracious to everyone there including the staff.' Respect for Starmer But it was a different story with Sir Keir. The insider noted: 'He spoke very warmly of Starmer. He genuinely likes him. I think he respects Starmer for standing up for himself and being straightforward and honest. Trump does not like a complete sycophant. 'In Keir he sees a decent man which the public in the UK don't seem to see at all.' This seemed to not only touch on trade issues but also the problems in the Middle East. When Emmanuel Macron declared France would recognise a Palestinian state he was savaged by Trump's secretary of state Marco Rubio. When Canadian PM Mark Carney did the same Trump himself said it would threaten their trade deal. But when Starmer did it, Trump effectively greenlit the decision and said he was fine with it. The personal relationship between Starmer and Trump was vital in getting that done. But there was more. One Washington insider close to the White House told The Independent: 'Trump does not want any trouble with the UK until after he had a successful state visit in September.' They predicted: 'The relationship with Starmer will eventually fall apart over censorship – online harms bill, digital services taxes, illegal migration, Palestine, and Labour's capitulation to Islamism.' However, that might not be the case. The key to UK diplomacy with the US is King Charles III and the Prince of Wales, with the US president's reverence of the royal family keeping the show on the road. One source said: 'The King and Trump are actually very close.' Meanwhile he 'has spoken a lot' to Prince William, who he met at the reopening of Notre Dame cathedral in Paris. Mandelson works the room Added to that though has been the work of Lord Mandelson as the UK's ambassador in Washington DC. Having almost had his credentials rejected over links to China, Mandelson has been 'working hard to meet everyone and build relations'. 'He is one of the big reasons the UK did well out of the trade deal,' a source said. He is also been central to ensuring that the state visit in September by Trump is 'a big success'. One DC insider said: 'Currently Lord Mandelson is probably the most effective ambassador in Washington at the moment. He seems to know everybody.' Sir Keir will be hoping that this will all prove to be enough to maintain the preferential treatment he seems to be enjoying as a world leader with the US at the moment.
Yahoo
26 minutes ago
- Yahoo
Government crack down on promoting Channel crossings online
Anyone who advertises Channel crossings or fake passports on social media could face up to five years in prison under new plans. Policing minister Dame Diana Johnson said the government "want to go after the individuals promoting this and hold them accountable for this criminal behaviour". .
