Labour calls on Tories to return £5m donation from disgraced ICAP chief


The Labour Party has called on the Tories to return a £5m donation from disgraced ICAP founder Michael Spencer, saying that keeping the money showed the conservatives were only looking out for the “privileged few”.

Labour’s vice-chairman Michael Dugar threw down the gauntlet at Prime Minister David Cameron after it emerged that Spencer’s company was the lynchpin of the Libor rigging scandal.

Three former brokers at the compamy were found to be at fault. One notable instance showed a text message sent from a ICAP broker offering to buy the recipient a Ferrari if he rigged the rate.

“[Cameron] fought tooth and nail to avoid the scandal of rigging interest rates, the very scandal which has now engulfed one of his biggest donors,” Dugar told the Financial Times.

Spencer is a prominent Tory figure in the City and is close to many MPs. He has donated £4.8m to the party and was co-chair from 2006 and 2010.

The Conservatives have said that they will not give back the cash although they have moved to distance themselves from Spencer.