Former ICAP Japanese Yen Libor Broker Defends in Court

Since the dawn of the Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term (London Interbank Offered Rate) scandal that erupted in 2012, a multitude of institutions have been involved in the matter. From regulators to major banks and inter-dealer brokers, a number of settlements have been pronounced with individual charges looming.

As part of an ongoing investigation into the practices of major brokers regarding the manipulation of the Libor market, former ICAP broker Colin Goodman presented his statement to the court today. The broker, also known as “Lord Libor”, explained that he presented his predictions of the direction of the Japanese yen Libor market as genuine estimates.

In addition he stated to the court that any requests that came in for him to change his market calls were “annoying”. A trio of ICAP brokers have already been charged with being involved in the Japanese yen Libor benchmark rigging.

over the course of four years, Mr Goodman made 1,000 rate predictions

“Lord Libor”, named so by the market due to the precision of his calls, has been charged with conspiracy to manipulate the Japanese yen Libor interest rates. Over the course of four years, Mr Goodman made 1,000 rate predictions. In his defense he stated in front of a London criminal court that the information that he sent out to clients was based on his own honest opinion.

In his daily email, which he was sending out to bank clients at 7 AM London time, he made calls on the prospective direction of the market. Mr Goodman is one of the six former ICAP, RP Martin and Tullett Prebon brokers who have been accused by the prosecution of helping the already convicted derivatives trader Tom Hayes, also known as the "Rain Man" trader.

According to a statement made in court, Goodman's predictions were a “genuine estimate” of the market direction.

Back in August, Tom Hayes was sentenced to 14 years in prison after the court established that he actively participated in the manipulation of the Japanese yen Libor rate while working at UBS Group AG and Citigroup Inc. He is presently appealing the unanimous verdict of the court.