Former London trader claims he confessed to Libor manipulation to avoid US extradition

Tom Hayes, the former London trader fighting criminal charges for manipulating Libor, said he originally confessed to misconduct in 2013 after being "frozen with fear" that he would be extradited to America.

The 35-year-old told Southwark crown court on Tuesday that he exaggerated statements to the UK's Serious Fraud Office (SFO), when admitting influencing the benchmark interest rate, in order to avoid a long prison sentence in the US.

He added that he did not believe he had acted dishonestly with regard to Libor and that he wanted to do his job "as perfectly" as he could.

Giving evidence for the first time, Hayes told the court how he was "petrified" after his arrest: "I went crazy. I was frozen with fear."

"The only consideration was getting charged and avoiding extradition. I didn't think about innocence or guilt."

He told the jury that he had been desperate to stay in Britain in order to remain with his wife and child and had therefore attempted to get charged by British prosecutors, ensuring that he would have to face trial in the UK.

The former yen derivatives trader denies eight counts of conspiracy to defraud between 2006 and 2010, when he worked for Swiss bank UBS and America's Citigroup. Each count carries a sentence of up to 10 years in prison. Shortly after he was arrested in 2012, it emerged that US prosecutors also wanted to charge Hayes on three counts, with each one carrying a 20- to 30-year sentence.