Lord Libor Says He Skewed E-Mail After Badgering From ICAP Pals

  • Colin Goodman says pressure started before he sat down at desk
  • Six brokers on trial in London for helping Hayes Rig Libor

Colin Goodman, the former ICAP Plc broker accused of skewing a supposedly-independent prediction e-mail to suit Tom Hayes, told a London court that he was was subject to "constant badgering and pressure" from his colleagues.

Goodman, who used the nickname “Lord Libor,” said on his first day of testimony that he usually ignored the requests, but adjusted his forecasts on "a handful of occasions" due to pressure that started "before he’d sat down at his desk."

The 53-year-old Goodman is one of six brokers from ICAP, Tullett Prebon Plc and RP Martin Holdings Ltd. on trial for helping Hayes, a former UBS Group AG and Citigroup Inc. trader, rig the yen variant of the London interbank offered rate, a benchmark used to price trillions of dollars worth of financial contracts from mortgages to credit cards and student loans. Hayes was convicted of similar crimes in August.

Darrell Read, Colin Goodman, Daniel Wilkinson, Noel Cryan, Terry Farr and James Gilmour

Photographer: Luke MacGregor/Bloomberg

Each day at around 7 a.m. in London, Goodman e-mailed dozens of traders and brokers, including 13 of the 16 banks on the yen Libor panel, with his predictions for where Libor would be set at 11 a.m. Prosecutors claim some banks, such as Germany’s WestLB AG and Citigroup, parroted Goodman’s run-through for weeks at a time.

Goodman rarely spoke to Hayes himself, but prosecutors said he took instructions from another defendant in the case, Darrell Read. An ICAP employee in New Zealand, Read was Hayes’s derivatives broker. Read’s boss, Danny Wilkinson, another defendant, also leaned on him to change his forecasts, Goodman said under questioning from his lawyer.

Within a Range

Even when he made changes, the predictions were still within a range of where Goodman considered justified based on his assessment of the market, he said.

Goodman, Read and Wilkinson were friends who started together at Godsell, Astley and Pearce in the 1980s, prosecutors said. The firm was later taken over by ICAP.

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