ICAP CEO Spencer Says He Shares ‘Disgust’ on Libor Action
ICAP Plc (IAP) Chief Executive Officer Michael Spencer said the behavior of three former brokers charged by U.S. prosecutors for manipulating Libor is “profoundly regrettable.”
“I share with you your horror and disgust,” Spencer, 58, said on a call with journalists today. “I regret this whole episode very deeply and very profoundly. A small number of people have let us down very, very badly.”
ICAP was today fined $88 million by U.S. and U.K. regulators for its role in the rigging of the yen London interbank offered rate. The three brokers were charged with two counts of wire fraud and one count of conspiracy to commit wire fraud for allegedly colluding with traders at UBS AG (UBSN) to manipulate the benchmark interest rate.
Of the 10 employees identified by regulators as involved in the wrongdoing, the “three people at the center of this were dismissed a while ago, others have gone as well and a tiny number” are still with company after being disciplined, Spencer said. The company is now spending about 17 million pounds ($27 million) a year on compliance, he added.
London-based ICAP, the world’s largest broker of transactions between banks, was fined $65 million by the U.S. Commodity Futures Trading Commission and 14 million pounds by the U.K. Financial Conduct Authority.
“I don’t think we’ll lose clients,” Spencer said. “At the end of the day, rogue conduct is something that any company is vulnerable to.”
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