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Icap fined £54.5m for Libor rigging

Icap Europe has been fined a total of £54.5m for manipulating Libor as pressure mounts on the Conservatives to hand back £4.3m in donations from its chief executive Michael Spencer.

The FCA has fined the inter-dealer broker £14m while it has also been hit with a £40.5m penalty from the US Commodity Futures Trading Commission.

Between October 2006 and November 2010 three Icap brokers colluded with traders at UBS to manipulate the Japanese Yen Libor rates for their own benefit.

UBS made 330 written requests to Icap brokers to manipulate Libor, which they did by asking panel banks to skew specific submissions.

One broker referred to himself as “Lord Libor” or “Mr Libor”, while in other cases champagne and dinners out were used to lure brokers into rigging.

From June 2007 to September 2009 onw Icap broker received £50,000 in bonus payments, which he knew to be corrupt.

Icap chief executive Michael Spencer was Conservative party treasurer from 2006 to 2010 and, according to wesbite searchthemoney.com, has donated more than £4.3m to the party. Labour says the Conservatives should now hand the money back to Spencer.

Labour MP and Treasury select committee member John Mann says the Tories should go further and donate the money to armed forces charities, as is the case with Libor fines.

FortyTwo Wealth Management partner Alan Dick says: “Regulatory action like this does nothing to help the aleady low reputation of the financial services sector.”

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