The Spider Network audiobook cover - The Wild Story of a Math Genius, a Gang of Backstabbing Bankers, and One of the Greatest Scams in Financial History

The Spider Network

The Wild Story of a Math Genius, a Gang of Backstabbing Bankers, and One of the Greatest Scams in Financial History

David Enrich

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Money & InvestmentsBiography & Memoir

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The Spider Network
Tom Hayes (The Protagonist)+
The Libor System+
The Manipulation Scheme+
Systemic Complicity+
Discovery & Betrayal+
Trial & Aftermath+

Quiz — Test Your Understanding

Question 1 of 8
According to the book, what is the primary lesson to be learned from Tom Hayes's story and the 2008 financial crisis?
  • A. Financial crimes are usually committed by isolated 'rogue traders' who deceive their bosses.
  • B. To prevent future crises, we must fix the corrupt banking system rather than just scapegoating individual traders.
  • C. Stricter psychological evaluations are needed to prevent people with Asperger's from entering high finance.
  • D. The Libor index should be replaced by the Tibor index to ensure global financial stability.
Question 2 of 8
What was the fundamental flaw in the Libor system that allowed it to be easily manipulated?
  • A. It was calculated using outdated computer algorithms from the 1980s.
  • B. It was based entirely on the Japanese yen, which was highly volatile at the time.
  • C. There was no verification system to ensure that the borrowing rates submitted by banks were accurate.
  • D. Only brokers with specialized licenses were legally allowed to view the daily rates.
Question 3 of 8
How did Tom Hayes's undiagnosed Asperger's syndrome impact his career in finance?
  • A. It gave him intense mathematical focus but contributed to his social ineptitude and unquestioning compliance with his bosses.
  • B. It prevented him from understanding the complex derivatives market, leading to massive financial losses for UBS.
  • C. It made him highly empathetic, which allowed him to build a massive network of loyal brokers.
  • D. It caused him to frequently miss work, eventually leading to his termination from the Royal Bank of Scotland.
Question 4 of 8
How did brokers like Darrell Read streamline the process of manipulating the Libor rates?
  • A. They hacked into the central banking mainframe to manually alter the daily averages.
  • B. They bribed government officials to pass laws that legalized interest rate tampering.
  • C. They convinced Colin Goodman to put specific numbers in his daily spreadsheet, which lazy submitters would simply copy.
  • D. They created fake banks to submit extreme borrowing rates that skewed the overall average.
Question 5 of 8
Which of the following best describes the attitude of bank executives, such as Mike Pieri and Chris Cecere, toward Hayes's Libor manipulation?
  • A. They were completely unaware of his actions until the government investigations began.
  • B. They actively encouraged and enabled his behavior because it generated massive profits for the banks.
  • C. They repeatedly warned him to stop, but lacked the authority to officially fire him.
  • D. They reported his suspicious activities to the authorities immediately to protect their own reputations.
Question 6 of 8
What was a 'switch trade,' which Hayes frequently used to reward his brokers?
  • A. A process of moving illegal funds into offshore accounts to avoid taxation.
  • B. A technique of swapping high-risk derivatives for low-risk mortgages at the end of the fiscal year.
  • C. A million-dollar trade made in one direction and immediately reversed, generating double commissions for the broker.
  • D. A method of exchanging insider information between competing banks without leaving a paper trail.
Question 7 of 8
Where did the term 'Spider Network' originate?
  • A. It was invented by Hayes's boss at Citibank to cast Hayes as a criminal mastermind and deflect blame from himself.
  • B. It was the official code name used by the US Justice Department during their investigation into UBS.
  • C. It was the name of the complex computer algorithm Hayes designed to predict slot machine payouts.
  • D. It was a nickname given to the group of Barclays employees who first confessed to tampering with Libor.
Question 8 of 8
What was the ultimate outcome of the legal proceedings against Tom Hayes and his network of brokers?
  • A. Hayes and all six of his brokers were convicted and sentenced to equal time in prison.
  • B. Hayes was acquitted after proving his bosses ordered the manipulation, while the brokers were imprisoned.
  • C. Hayes was the only person convicted and received a 14-year sentence, while the brokers were found not guilty.
  • D. All charges were dropped after the banks agreed to pay a multi-billion dollar settlement to the government.

The Spider Network — Full Chapter Overview

The Spider Network Summary & Overview

The Spider Network (2017) tells the fascinating story of Tom Hayes, the man who took the fall for the banking industry’s secret habit of manipulating interest rates. It’s a tale of what happens when traders, brokers and bank executives are allowed to operate without oversight.

Who Should Listen to The Spider Network?

  • Traders, brokers and anyone interested in the stock market
  • Investors hoping to avoid getting fleeced
  • Fans of a good corporate crime story

About the Author: David Enrich

David Enrich is the Financial Enterprise Editor for the Wall Street Journal, where he leads a team of investigative journalists. His reporting has won a number of awards, including the 2016 Gerald Loeb Award for his work on the Libor scandal, which he expanded into his book, The Spider Network.

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