The Spider Network by David Enrich Summary

The Spider Network investigates the Libor scandal, where math prodigy Tom Hayes and a group of bankers manipulated global interest rates for profit. David Enrich traces Hayes’ rise in finance, his Asperger’s-driven obsession with numbers, and the collusion among traders from major banks to rig the London Interbank Offered Rate (Libor), impacting mortgages, loans, and investments worldwide.

This book suits readers interested in financial scandals, white-collar crime, or the inner workings of banking systems. It appeals to those curious about real-world market manipulation, ethical failures in finance, and the psychological profiles of individuals like Hayes, who exploited systemic corruption.

Yes—it combines investigative rigor with narrative flair, earning a spot as a Financial Times Business Book of the Year finalist. Enrich’s access to key players and detailed storytelling make it essential for understanding one of history’s largest financial frauds.

Hayes orchestrated a network of traders and brokers to submit false interest rate data, artificially inflating or deflating Libor to benefit his trades. His tactics included bribes, collusion, and leveraging his mathematical genius to exploit the rate-setting process.

Libor (London Interbank Offered Rate) determined interest rates for trillions in loans globally. Hayes’ group targeted it because its opaque, self-reported structure allowed easy manipulation, enabling them to profit from derivatives tied to rate fluctuations.

Enrich explores how Hayes’ Asperger’s and the banking industry’s cutthroat culture normalized unethical behavior. The scandal highlights systemic failures, where personal gain outweighed legal and moral accountability, even among high-ranking financiers.

Enrich drew on his investigative journalism background, interviewing Hayes, bankers, and lawyers, and reviewing court documents. His financial reporting expertise, honed at The Wall Street Journal and New York Times, ensured rigorous sourcing.

The group included nicknamed players like “Gollum” (a French trader), “Abbo” (a broker known for public nudity), and “Big Nose.” Their collusion with Hayes created a web of deception across institutions like UBS and Citigroup.

Hayes was convicted of fraud in 2015 and sentenced to 14 years (reduced to 11 on appeal). His case underscored the legal system’s struggle to hold individuals accountable in complex financial crimes.

Enrich depicts a profit-driven world where backstabbing, reckless risk-taking, and moral ambiguity were rampant. The Libor scandal exemplified how institutional complacency enabled widespread fraud.

Shortlisted for the Financial Times Business Book of the Year, it solidified Enrich’s reputation for exposing financial malfeasance. His Loeb and George Polk Awards further validate the book’s journalistic excellence.

As the New York Times Business Investigations Editor and a Pulitzer-finalist journalist, Enrich has decades of experience uncovering financial crimes. His previous exposés on banking corruption informed this deep dive.