Tory donor embroiled in rigging scandal

Britain™s former Conservative party treasurer Michael Spencer has been embroiled in Libor rigging scandal.

Britain™s former Conservative party treasurer Michael Spencer has been embroiled in a Libor interest-rate rigging scandal after his company ICAP was charged over the misconduct.

The London-based interdealer broker was fined by US and British regulators a total of £55 million while three of its former traders were charged in a federal court in New York with fraud.

“These three men are accused of repeatedly and deliberately spreading false information to banks and investors around the world,” said Acting Assistant Attorney General Mythili Raman of the US Justice Department’s criminal division.

Britain™s opposition Labour party has also called on the Conservatives to return £4.6 million in donations received from Spencer.

“[British Prime Minister] David Cameron fought tooth and nail to avoid launching a proper inquiry into the scandal of rigging interest rates, the very scandal which has now engulfed one of his big donors – a man who has given him nearly £5 million,” said Labour’s vice-chairman Michael Dugher.

The London Interbank Offered Rate (Libor), which helps determine the price of $350 trillion products worldwide, is calculated daily by averaging submissions from a group of banks.

Earlier in February, the Royal Bank of Scotland (RBS) was fined £390 million by UK and US authorities over its involvement in the Libor rigging scandal.

SSM/HE

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