by David Enrich
Libor investigation, 205–6, 257, 338–39, 344–46, 350–56
“light touch” strategy, 29–30, 196
Financial Times, 193
Financial Times Stock Exchange (FTSE), 67–68
Finma, 271
Finsbury Square, 54
Fisher, Paul, 207–8
Flash Crash of 2010, 286, 286n
Fleet Street, 187–88
Foreign Exchange and Money Markets Committee (FXMMC), 78, 183, 195–96, 222, 244
forward rate agreements (FRAs), 160
FourFourTwo, 87
Frank, Anne, 228
Freud, Lucian, 49
Fulcrum Chambers, 347–49, 395, 415
futures contract, 31–32
“gardening leave,” 241, 265
Geithner, Tim, 195, 203–4, 357
Gensler, Francesca Danieli, 253–54
Gensler, Gary, xii, 246–49
background of, 246–47
at CFTC, 248–49, 253–54, 312–13
Barclays settlement, 357–59
Libor investigation, 264–65
Libor investigation, 399–400
personality of, 253, 254
Treasury undersecretary, 247–48
Gensler, Robert, 246–48
Gensler, Sam, 246
Gibson, Dunn & Crutcher, 316, 317–19, 400
Gilmour, Jim, xii, 118
arrest of, 364–65
background of, 118
compensation, 176, 315
firing of, 378
Hayes and Libor submissions, 163–64, 165–66, 365–66
Libor trial, 452–53, 455–56, 458–59
SFO criminal charges, 390–91, 401
Gilmour, Lisa, 118
Glass-Steagall Act, 19
gold standard, 32
Goldman Sachs, 21, 157–58
culture of, 158–59
Gensler at, 247
Hayes job offers, 157–59, 212
Libor report, 207–8
Golestan Palace, 25
Goodman, Colin, xi, 97–100
background of, 97–98
commissions, 130–32
FSA/CFTC interview, 355–56
Journal stories, 198
Justice criminal charges, 394–95
Justice investigation, 343–44
Libor manipulation, 129, 133–34, 148–49, 149n, 274
Libor run-throughs, 97–100, 116, 116n, 130–31, 130n, 385, 403, 431
Libor trial, 452–53, 455–56
SFO criminal charges, 404
suspension of, 354–55
Goodwin, Fred
expansion strategy for RBS, 36–37, 53–54
Libor manipulation, 211–12
Gray’s Sporting Journal, 188
Great Depression, 19
Great Recession, 223, 256, 266
Greek government-debt crisis, 285
Green, David, xiii, 359–62, 366–67, 457
Green, Kevin, 301–2
Griffin, Ken, 20
Grosvenor House, 262
Grübel, Oswald, 212, 336
Gulf International Bank, 182–83
Haile Selassie, 39–40
Hammond, Scott, xiii, 318, 323, 400
Harris, Scott, 115
Harvard University, 26
Hatton, Ricky, 134–35, 136
Hawes, Neil, xiii, 410, 425–33, 436–37, 438, 453
Hayes, Anthony “Abbo,” xi, 235–36, 445
Hayes, Joshua, 337, 363, 370, 373, 383, 384, 388, 409, 415–16, 433–34
Hayes, Nick, ix, 10–11, 104, 152, 419n
Hayes, Raymond, 12–13
Hayes, Robin, ix, 10, 110, 123, 140, 145, 146, 151–52, 321, 381
Hayes, Sandy, ix, 10–11, 13, 15, 16, 21, 305–6, 373, 419, 425
Hayes, Tom, ix
Ainsworth and. See Ainsworth, Sarah
appeal of, 452
appearance of, 11, 23, 88
arrest of, 364–69
author’s first meeting with, 4–5
bachelor party, 299–300
budding interest in finance, 12, 13–14
car accident, 393–94
CFTC investigation, 322–23
at Citigroup, 2, 257–61, 269–70, 276–77, 279–80, 282
Bank of Japan information, 278–79
compensation, 2–3, 230–31, 285
culture, 275–76
firing, 301–7, 313–14
first day of work, 270
internal investigation, 297–301, 333–34
at Japanese getaway, 2–3
job offer, 229–32, 239–40
losses, 287–90, 294–95
severance request, 302–3
trading positions, 287–94
computer models, 23, 35, 58–59, 88–89
criminal fraud charges, 4–5, 6, 367, 370, 371–72, 374–75, 387–92, 397, 407
early life of, 9–16
education of, 9, 11, 13–15, 16, 21, 22, 321–22
entertaining of, 85, 123–24, 134–36, 224–25, 265, 408
FSA investigation, 344–46
gambling of, 13–14, 59, 409
“gardening leave” of, 241, 265, 289
hiring of lawyer, 347–49
job offers, 55, 57, 58, 60–61, 212–13, 305
Goldman Sachs, 157–59, 212
job search after UBS, 320–22
Journal stories, 198
Justice extradition, 348, 367, 371–72, 374, 395, 397, 404
Justice investigation, 324–25
Alykulov telephone call, 328–31
Libor manipulation, 5, 94–97, 101–3, 107–12, 115–17, 132–34, 143–46, 148–49, 160, 163–66, 168–70, 210–11, 213–14, 217, 220–22, 225–27, 234–35, 238, 259, 276–77, 279–80, 282–84, 290–92, 294–97
Libor strategy, 110–12
market making, 155–56, 165–66, 219
media exposure, 346–47, 348, 387–88
nicknames of, 2, 31
online trading, 338, 380–81
personality of, 11, 44, 54, 92, 104, 142–44, 154–55, 225, 236–37, 282, 410, 412–13
prison term of, 450–52, 457–58
at RBC
compensation, 58
exit interview, 63–64
Japanese interest rates, 60–65
job offer, 55, 57, 58
resignation, 61
untangling of trades, 62–65
at RBS, 22–23, 24, 29–31, 54–55
assignment to Japanese derivatives, 35–37
broker relationships, 41, 43–48
compensation, 55
hiring and training, 22–23
losses and resignation, 57–58
SFO investigation, 361, 362, 365–66
cleansing interview, 375–77
cooperating witness, 371–72, 374–77, 380, 382–85
seizure of assets, 391, 392, 396–97, 452, 455
SFO trial, 419–39
closing statements, 436–37
defense prep, 402–4, 417
defense strategy, 412–14
jury deliberations, 437–39
jury verdict and sentencing, 443–44
not guilty plea, 395–97, 401–2
opening statements, 423–24
pretrial rulings, 414–16
prosecution witness testimony, 426–27
testimony, 428–31, 432–36
superstitious nature of, 103–4, 401
switch trades, 169–77, 213–14, 226–28, 244–45
Tighe and. See Tighe, Sarah
at Title X Technology, 360
at UBS, 64–65, 85–106, 142–43, 212–13, 230–33, 237–39
broker relationships, 95–103, 121–22
compensation, 87–88, 104–5, 142, 144, 159–60, 210–11, 212
departure, 292–94
first trading day, 91–95, 95n
homesickness, 86–87, 161
internship, 16–19, 21
Japanese interest rates, 91–95
job of
fer, 60–61
pricing and risk systems, 88–89
resignation, 239–41
work visa, 86
“headline,” 111n
Heath-Jarrow-Morton framework, 261
“hedging,” 18
Herbert Smith Freehills, 161, 217–18
Hibor, 92
Hoffman, Gary, 194
Holder, Eric, 267, 394–95
Holling, Damian, 360–61
home mortgages, 70–71
“hoot and holler” system, 275
Hoshino, Hayato, x, 315
background of, 277
Hayes and Libor submissions, 277, 279–80, 283–84, 284n, 291, 294–96, 298
update on, 445
housing bubble, 138–39, 150
Houston, Libor suit, 256
HSBC, 110–12, 164, 235, 236
Hult International Business School, 321–22, 347
Hunt, Peter, 413n
IBM, 33
ICAP, 49–50
brokers, xi, 47–50. See also specific brokers
culture of, 128
“entertainment” and commissions, 51, 52
financial settlement, 395
launch of, 41
Libor investigations, 335, 343–44, 361
Libor run-throughs, 95–100
polo shirts, 88
Iksil, Bruno, 349–50
industrial organization, 249
inflation and currencies, 32
insider trading, 12
interdealer brokers, 41–42
interest rates, 27–28, 34–35
home mortgages and, 70–71
Libor and, 5
interest-rate swaps, 34–37, 68–69
International Monetary Fund, 22, 204, 447
investment banking, 17–22
Iran, 25–26
Isle of Wight, 402–3
“Is Libor Broken?” (Peng), 187, 190–93
Japan tsunami of 2011, 325–26
Japanese Bankers Association, 92, 93, 270, 281
Jerman, Matt, 295
Jibar, 92
Johansson, Jerker, 159
Jones, Mark, xii, 171, 173–74
Jones Day, 400
Jonson, Lydia, xiii, 365, 366, 368, 369, 375–76, 387–88, 390, 391–92, 396
Journal of Finance, 253
J.P. Morgan
credit default swap indexes, 349–50
Hayes job search, 21, 60
Libor submissions, 79–80, 107–8, 108n, 197
Justice Department, U.S., xiii, 265–69
Enron collapse, 200, 202, 266–67
fraud and antitrust sections, 323–24
Libor investigation, 268–69, 323–25, 343–44, 348
Hayes arrest, 366–67, 371
Hayes extradition, 348, 367, 371–72, 374, 395, 397, 404
Hayes fraud charges, 4–5, 6, 367, 370, 371–72, 374–75
Kazakhstan, 326, 328–29
Keenan, Douglas, 72
Kengeter, Carsten, x, 212–13, 231, 233, 373, 383, 445–46
KFC, 123, 393, 415
King, Cliff, xii, 118, 176, 224–25, 379
King, Mervyn, xii, 195, 203–4, 357, 359, 446–47
Kissinger, Henry, 26
Knight, Angela, xii, 182–83, 192, 193–94, 205–6, 359, 446
Ko, Kii, 291–92
Koh Samui, 224
Kondo, Illenin, 249–50
Koutsogiannis, Panagiotis “Pete the Greek,” x
background of, 151
FCA appeal, 416–17, 425–26
Hayes firing, 304
Libor manipulation, 151, 233–34
SEC and Libor, 270n
UBS shareholder meeting and bonuses, 150–51
Labour Party, 10, 15, 68, 358
Ladbrokes, 401–2
Lady Marmalade Adult Parties, 52–53
Landesbank Berlin, 183
Langkawi, 285
Las Vegas, 51–52, 134–36, 171, 209–10
housing bubble, 135–36
Lawson, Nigel, 372
Laydon, Jeffrey, 113–14
Leeson, Nick, 37
Lehman Brothers
bankruptcy, 164–65, 166, 169, 260
Peng at, 185–86
Lewis, Mark, x, 305
Lewis, Michael, 141, 154
Libor, 4–5, 70–75, 91–92
bunching phenomenon, 251–52
definition of, 207–8, 244
home mortgages and, 70–71
ICAP run-throughs, 95–100
introduction of, 26–28, 69–70
licensing fees, 76–78
linking to Eurodollar futures, 74–75
lowballing, 253, 317, 357–59
potential for manipulation, 71–73
UBS and, 81–83
“Libor Fog: Bankers Cast Doubt on Key Rate Amid Crisis,” 190–91, 195, 202–3, 204–5
Libor trial of Allen and Conti, 456–57
Libor trial of brokers, 452–56, 457–59
Libor trial of Hayes, 419–39
closing statements, 436–37
defense prep, 402–4, 417
defense strategy, 412–14
jury deliberations, 437–39
jury verdict and sentencing, 443–44
not guilty plea, 395–97, 401–2
opening statements, 423–24
pretrial rulings, 414–16
prosecution witness testimony, 426–27
testimony, 428–31, 432–36
“light touch” banking regulation, 29–30, 70, 196
Limehouse, 55–56
Liverpool University, 47
Lloyds Bank, 45
London riots of 2011, 335
London Stock Exchange, 70, 446
Long-Term Capital Management, 33, 288
L’Oréal, 168
Los Angeles Times, 21
Lost Decade, 36
Louisiana, Libor suit, 256
Love Island (TV show), 425
lowballing, 253, 317, 357–59
Lowdham Grange, 450–51, 457–58
Lowe, Gretchen, xii, 201, 203, 204–5, 257, 264, 313
Luyendijk, Joris, 29
Madden, Luke, xi, 282, 295
Maduro Bar, 229
Magumbos, 218, 236
Mahiki Club, 227, 228n
Malaysia, 285–86
Manhattan U.S. Attorney’s Office, 311–12
Manufacturers Hanover, 26, 28
market making, 17–18, 155–56
Martin, Jeremy, 143–44
Massachusetts Institute of Technology (MIT), 184, 185
Matsumoto, Yugo, 238, 290
Mayweather, Floyd, 134–35, 136
Mccappin, Brian, x
background of, 3
Hayes firing, 302–3
Hayes job offer, 229–30
Hayes and Libor manipulation, 280–81, 284, 291–92, 298, 299, 300, 338
Hayes wedding, 265
at Japanese getaway, 2–3
karaoke singing of, 3, 229–30
SFO criminal charges, 383
SFO investigation, 314
update on, 446
work culture of UBS, 275
McCarran International Airport, 135–36
McGonagle, Vincent, xii, 198–203
background of, 199
Libor investigation, 201, 203, 205, 257, 313
McInerney, Denis, xiii, 268–69, 323, 362, 367, 368
Meaney, Patrick, xiii, 345–46, 350–52, 356, 408
Meister, David, xii, 311–13, 400
background of, 311–12
at CFTC, 312–13, 322–23
Mercedes, 321, 381, 393–94
Merrill Lynch, 121, 220
Bank of America acquisition of, 164, 170, 320
Stenfors “mismarking” books, 163, 214–17
Merriman, Alex, 76, 79
MGM Grand Garden Arena, 134–36
Microsoft Excel, 23, 89
Miliband, Ed, 358
Milken, Michael, 311–12
&n
bsp; Millwall F. C., 43, 174
Mississippi River, 249
Mocek, Gregory, xiii, 262–63
Mohammad Reza Pahlavi, 25–26, 28
Mollenkamp, Carrick, 188–91, 193, 196–98
Moorfields Eye Hospital, 258
Morgan Stanley, 128, 212
Morton, Andrew, x
application to join Tibor, 270
at Citigroup, 260–61
Hayes firing, 302, 304–5
interest-rate derivatives, 260–61
Libor investigation, 291, 293–96
Libor manipulation, 281–82
Mossaddegh, Mohammad, 26
Mullens & Company, 12–13
“muppets,” 123–24
Murphy & McGonigle, 400
Muyskens, Nate, 326–27, 328–29
NASA, 184
NatWest Three, 373–74
New England Patriots, 43
New Year’s Eve, 209–10, 265
New York City Transit Authority, 202
New York Mafia, 311
New York Times, 399
Nicholls, David, x, 79, 192–93, 220, 457
Nicholson, Jack, 153, 154
Nishimura, Nanci, 254–56, 431–32
Northern Rock, 139
Obama, Barack, 243, 248–49, 267–68, 268
Obie, Stephen, xii, 201–3
background of, 201–2
Libor investigation, 254, 257, 262–66, 271, 313, 322–23
Barclays recordings, 262–63, 264, 266
update on, 400
Ocean Colour Scene (band), 3
Oddie, Simon, 214
Office of Fair Trading (OFT), 332–33
oil price fixing scandal, 200
Oklahoma Police Pension & Retirement System (OPPRS), 114
Old Rectory, 337–38, 363–64, 368, 380, 381, 384, 391, 393
O’Leary, Ben, ix, 110, 126, 330
O’Leary, Peter, ix, 110–12
O’Leary, Tim, 10, 13, 16, 110
Orcel, Andrea, 372
Organisation of African Unity, 39
Ospel, Marcel, 81
overnight index swaps, 103, 142
Oxford University, 14, 40
Pac-Man, 104, 110
Park, Robertson, xiii, 266–69, 323, 324–25, 333, 400
Pearce, Ivan, xiii, 348, 372
Peng, Scott, 184–87, 217
background of, 184
at Citigroup, 186–87
interest in Libor, 186–87
“Is Libor Broken?” 187, 190–93
at Lehman Brothers, 185–86
People’s Journal, 188
Perfect, David, 94–95
Pieri, Donna, 89, 314
Pieri, Mike, x
anti-Hayes efforts, 289, 290, 292–94, 313–14
background of, 89
Hayes departure, 292–94, 313–14
Hayes hiring, 60
Hayes performance review, 143
Hayes trading, 92, 160, 166, 231
Justice investigation, 342
Lehman’s collapse, 165, 231
Libor investigation, 315–16
Libor manipulation, 99, 99n, 115, 166, 176, 221–22, 233, 238, 238n