Tom Hayes developed a ‘God syndrome’, court hears in Libor trial

The convicted Libor trader Tom Hayes went from being a shy newcomer to a “psychotic”, a former broker told Serious Fraud Office (SFO) investigators.

Despite a reputation for offensive outbursts, Hayes was such an important client of Tullett Prebon, the firm Noel Cryan worked for, Mr Cryan claimed he felt he could not refuse Hayes’ requests to help manipulate Libor lending rates for fear of being sacked, Southwark Crown Court has heard.

Questioned by SFO investigators about his relationship with jailed trader Hayes, Mr Cryan said he believed Hayes developed “God syndrome” and became abusive.

He claimed he agreed to help Hayes manipulate Libor rates but never passed on his requests to the rate setters.

Mr Cryan, 49, of Chislehurst, Kent, and five other brokers deny conspiring to defraud by trying to manipulate the Libor rates linked to the Japanese yen.

Libor – the London interbank offered rate – is a key rate used to set interest rates on thousands of financial products from mortgages to loans across the world. Broker James Gilmour, from Benfleet in Essex, who worked for RP Martin, told investigators he would “fob” Hayes off by agreeing to pass on his requests for Libor manipulation but then do nothing.

Mr Gilmour’s former boss Terry Farr, 44, from Southend, Essex, told the SFO he knew the term “Libor,” but had no idea what it stood for or how it was used.

He insisted he did not know how a bank even made Libor submissions. The Southwark trial continues.

Separately, jury selection began in New York for the trial of two British traders facing Libor rigging charges.

Anthony Allen, 44, and Anthony Conti, 46, both former employees of the Dutch bank Rabobank, deny the charges. The trial is the first by the US Justice Department following a worldwide investigation.