Libor Rigging Convictions Quashed: 5 Barclays Traders

The UK Court of Appeal quashed the Libor and Euribor rigging convictions of five former Barclays traders on 7 October 2026, marking another major reversal in the benchmark-manipulation prosecutions that followed the 2008 financial crisis. Jay Vijay Merchant, Jonathan Mathew, Philippe Moryoussef, Alex Pabon and Colin Bermingham had all been convicted of conspiracy to defraud over submissions to the interest-rate benchmarks that underpin trillions of pounds in mortgages, loans and derivatives.

What Was the Libor Rigging Scandal?

Libor — the London Interbank Offered Rate — was the benchmark used to set borrowing costs across global finance. Between roughly 2005 and 2010, traders at major banks, including Barclays, were accused of submitting false rates to profit from their trading positions. The Libor rate-rigging scandal triggered criminal investigations on three continents and roughly $9bn in bank fines. Barclays paid about £290m to UK and US regulators in 2012.

The five men were prosecuted by the Serious Fraud Office (SFO). Merchant, Mathew and Pabon were convicted in 2016 over Libor; Moryoussef and Bermingham were found guilty over Euribor in 2018 and 2019. Sentences ranged from two to eight years, and four of the five served jail time. Moryoussef was sentenced in absentia after France declined to extradite him.

Why Were the Convictions Quashed?

The ruling flows directly from the UK Supreme Court's decision in July 2025 to overturn the convictions of former trader Tom Hayes and Carlo Palombo. In that landmark judgment, delivered by Lord Leggatt, the court found trial judges had given juries “legally inaccurate and unfair” directions, wrongly suggesting that any consideration of commercial interest automatically made a rate submission dishonest. The court also rejected the “single cheapest rate” theory as a “blind alley,” according to the Supreme Court case record.

That decision opened the door for the Criminal Cases Review Commission referrals to reconsider other convictions. The commission referred the five Barclays cases in January 2026. Judge Andrew Edis said the Supreme Court's reasoning effectively determined these appeals. The SFO did not oppose them, having concluded that retrials were not in the public interest.

What the Traders Said

Jonathan Mathew said the ruling corrected a decade-old injustice. Philippe Moryoussef described the outcome as “regaining my soul” after losing his career and reputation. Their lawyers argued the men were prosecuted for what were, at the time, ordinary commercial practices.

Impact on Financial Misconduct Enforcement

The decision is another blow to the SFO and raises broader questions about financial misconduct enforcement in complex markets. After the Barclays ruling, only two traders remained convicted: former Deutsche Bank trader Christian Bittar, whose appeal was due on 9 October 2026, and whistleblower Peter Johnson, who plans to appeal.

The reversals do not amount to exoneration. The Supreme Court acknowledged there was ample evidence that some traders intended to distort rates. Instead, the rulings turn on legal error — how juries were instructed about dishonesty and benchmark definitions — rather than on whether manipulation occurred.

Libor Has Already Been Replaced

Whatever happens in the criminal appeals, the regulatory response stands. Libor was abolished at the end of 2024, replaced by risk-free rates such as SONIA in the UK and SOFR in the US. The benchmark interest rate reform remains a central legacy of the scandal, even as individual convictions collapse.

Expert Perspectives

Legal analysts said the cases exposed the difficulty of applying criminal fraud law to nuanced market conduct. “The Supreme Court fundamentally reframed what juries should have been told about benchmark submissions,” one barrister involved in the appeals said. The rulings also highlighted concerns, raised by the Supreme Court itself, about the effectiveness of the criminal appeal system in England and Wales in correcting legal error.

FAQ

Why did the Court of Appeal quash the Barclays traders' convictions?

The court applied the Supreme Court's 2025 finding that trial judges gave juries “inaccurate and unfair” directions, making the original verdicts unsafe.

Who were the five former Barclays traders cleared?

Jay Vijay Merchant, Jonathan Mathew, Philippe Moryoussef, Alex Pabon and Colin Bermingham.

What happened to Tom Hayes's conviction?

The Supreme Court quashed Hayes's 2015 Libor conviction in July 2025, along with Carlo Palombo's Euribor conviction, finding legal error in the jury directions.

Does this mean Libor was not manipulated?

No. The Supreme Court said there was ample evidence of intent to distort rates, but the convictions could not stand because of legal errors in the trials.

How many rate-rigging convictions remain in the UK?

After the Barclays ruling, only Christian Bittar and Peter Johnson remained convicted; Bittar's appeal was due two days later.

Conclusion: What Comes Next

The collapse of the UK's Libor prosecutions shows how a single Supreme Court ruling can unravel a decade of enforcement. Attention now turns to Bittar's appeal and Johnson's expected challenge, while the SFO faces renewed questions about its approach to white-collar crime prosecution in the years ahead.