Getting up at 4.30 am and travelling to London to hear the words of Lord Leggatt was a day we will never forget, writes Professor Claire McGourlay and Fintan Walker. A landmark decision was handed down by the Supreme Court today, the convictions of former city bankers Tom Hayes and Carlo Palombo were quashed, marking the dramatic end to a decade long legal battle that has raised urgent questions about the integrity of the UK’s criminal justice system.

Delivering the unanimous judgment, Lord Leggatt opened with a powerful indictment of the system that had failed both men: ‘The history of these cases raises concerns about the effectiveness of the criminal appeal system in England and Wales in confronting legal error.’

Hayes and Palombo were originally convicted for their alleged roles in manipulating financial benchmarks, the London Interbank Offered Rate (LIBOR) and the Euro Interbank Offered Rate (EURIBOR), in high-profile prosecutions spearheaded by the Serious Fraud Office. Both have always maintained their innocence, insisting their actions were in line with industry norms and lacked any criminal intent.

Speaking outside the Supreme Court after the verdict,  Tom Hayes said: ‘I lost my faith in the justice system and it’s been restored by the Supreme Court today.’ And later at the press conference he added: ‘So many times I thought about what to say, and I always believed this would happen, it wasn’t a gamble, it wasn’t a criminal offence. I’m very grateful to the Supreme Court. I know how it feels to lose, and today I know how it feels to win. Today’s a happy day.’

Hayes said: ‘There are also seven others and those seven need justice. I hope the SFO has the dignity not to oppose them.’

Carlo Palombo, who was convicted in 2019 and served several years in prison, added: ‘Thanks to everyone who supported our fight for justice over the past ten years. We went through a series of appeals that made no sense and showed a disregard for the rule of law. Now it’s the beginning, and not just being seen as the monster.’

‘Justice at Last’
Former cabinet minister David Davis MP, a vocal supporter of both men, welcomed the ruling but lambasted the failures that preceded it. ‘Justice at last – but only after lives were ruined, families torn apart, and our justice system exposed for its failings at every turn,’ Davies said. ‘This is yet another example of the criminal justice system going badly wrong. We urgently need reform, from the use of expert witnesses to the rigidity of the appeals process,’

Davis said, revealing he had raised the issue of compensation with the Prime Minister just two weeks ago.

Karen Todner, Hayes’s solicitor, was equally scathing in her criticism of the institutions involved: ‘The Serious Fraud Office failed dramatically. These failings meet the threshold for a full public inquiry. The Criminal Cases Review Commission (CCRC) took six years to return this case to the Court of Appeal, far too slow for justice. The only body that should be bringing prosecutions is the CPS. Keep fighting and never give up.’

A Justice System Under Scrutiny
Today’s judgment not only clears the names of two men, but has also reignited debate over the broader integrity of the justice system in financial crime cases, and the role of juries.

Asked whether such trials should be judge-only, Palombo said: ‘Juries can’t see through the lies, it plays on their emotions and then they convict. That’s a problem. Can justice be a game?’

Hayes offered a stark warning: ‘This is a dangerous idea. We are going down a very slippery slope, and we are doing it because of a massive court backlog. Had my case just been heard by a judge, I would have stood no chance against Justice Jeremy Cooke. The jury is the last defensive barrier that every person in this country has between them and a wrongful conviction. I hope Parliament does not go down that route.

With today’s ruling, pressure is mounting for compensation, institutional reform, and potentially a public inquiry. For Hayes and Palombo, it is the end of a nightmare and the beginning of a new chapter, one they hope will serve as a warning and catalyst for long-overdue change.

For now, though, it is also a moment of vindication.

‘Today’s a happy day,’ Hayes repeated. ‘Being able to see the stars at night and be with my family –  I’ve learned what it really means to value things in your life.’

Listen to the Manchester Innocence podcast to hear about Tom’s fight here: Episode 8: The ‘Scapegoat’ Banker — The Innocence Podcast