Tom Hayes, previously employed at UBS’ Tokyo division, is currently on trial for manipulating Libor. In 2013, Hayes informed Serious Fraud Office (SFO) officials that senior directors ordered him to rig Libor in order to give the false impression the bank was in a “position of strength” in 2008/9. By keeping rates low, borrowing appeared cheaper than it was, and made the bank appear more solvent than it was in reality.

“Senior management were keen to rig Libor, to effectively lie about their cost of borrowing by 50 to 100 points,” Hayes told investigators.

He further claimed Carsten Kengeter, then joint head of UBS’ investment division, now head of German stock exchange group Deutsche Börse, attended meetings where Libor manipulation was discussed.

Hayes says that rigging was an open secret at the bank, informing the SFO “it was too widespread and open that people could be unaware…It was so blatant.

“The solvency manipulation came from right on high, with messages coming down from group treasury and from the board.”

Hayes has pleaded not guilty to eight counts of conspiracy to defraud.

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