The former head of investment banking at UBS personally approved a $2.5m (£1.6m) bonus for the man described as the “ringmaster” of the Libor fraud scandal, a jury heard today. Jerker Johansson, who was the chief executive of the Swiss group’s investment bank unit until April 2009, agreed to increased incentives for Tom Hayes after being told that the star trader was being offered a $3m-a-year package to defect to rival Goldman Sachs.
Hayes denies charges that he conspired with individuals at eight banks and two brokerage firms to manipulate the Libor interbank lending rates over a four-year period.
On the third day of his trial at Southwark crown court, the prosecution claimed he pushed more than £330,000 of alleged bribes through two brokers during a single year. By 2008, Hayes was earning tens of millions for his Swiss employer.
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