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Tullett Prebon dragged into Libor scandal

London-listed broker "involved in conversations" over Libor.

An unnamed broker at Tullett Prebon is believed to have been involved in conversations related to manipulation of the yen Libor rate, according to the Financial Times.

In the UBS settlement document, the Financial Services Authority (FSA) wrote that Tom Hayes, former UBS trader identified as Trader A, made 39 Libor-related requests in July 2009 of an unnamed broker, identified as Broker F of Broker Firm C.

However, according to undisclosed sources probing the Libor, Tullett is Broker Firm C.

In an electronic chat, Hayes put in a request for the six-month yen rate on 14 July 2009 saying “HIGH 6M SUPERMAN . . . BE A HERO TODAY”, while Broker F replied: “ill try mate ... as always.”, according to UBS settlement document.

The document also alleges that two UBS traders entered into “wash trades through two broker firms in order to facilitate corrupt brokerage payments to brokers as reward for their efforts to manipulate [Japanese yen] Libor submissions” made by rate-setting banks.

The RBS settlement, in which Tullett is Broker Firm 3, alleges that RBS paid a total of “at least £199,000 in corrupt payments to two broker firms to increase its influence over the broker firms”.

Sources familiar with the matter said that these firms were RP Martin and Tullett.

Tullett said: “Tullett Prebon has never been informed by the FSA or any other regulatory authority that Tullett Prebon or any of its brokers are under investigation in relation to Libor.”

UBS paid $1.5bn for Libor scam in December 2012, while RBS paid £390m to regulators in the UK and US last week.

In January 2013, the Financial Times reported that the UK-based dealer broker ICAP had become the focus of an FSA probe into the Libor affair.

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Geoffrey Howe dies, aged 88

Howe was Margaret Thatcher's longest serving Cabinet minister – and the man credited with precipitating her downfall.

The former Conservative chancellor Lord Howe, a key figure in the Thatcher government, has died of a suspected heart attack, his family has said. He was 88.

Geoffrey Howe was the longest-serving member of Margaret Thatcher's Cabinet, playing a key role in both her government and her downfall. Born in Port Talbot in 1926, he began his career as a lawyer, and was first elected to parliament in 1964, but lost his seat just 18 months later.

Returning as MP for Reigate in the Conservative election victory of 1970, he served in the government of Edward Heath, first as Solicitor General for England & Wales, then as a Minister of State for Trade. When Margaret Thatcher became opposition leader in 1975, she named Howe as her shadow chancellor.

He retained this brief when the party returned to government in 1979. In the controversial budget of 1981, he outlined a radical monetarist programme, abandoning then-mainstream economic thinking by attempting to rapidly tackle the deficit at a time of recession and unemployment. Following the 1983 election, he was appointed as foreign secretary, in which post he negotiated the return of Hong Kong to China.

In 1989, Thatcher demoted Howe to the position of leader of the house and deputy prime minister. And on 1 November 1990, following disagreements over Britain's relationship with Europe, he resigned from the Cabinet altogether. 

Twelve days later, in a powerful speech explaining his resignation, he attacked the prime minister's attitude to Brussels, and called on his former colleagues to "consider their own response to the tragic conflict of loyalties with which I have myself wrestled for perhaps too long".

Labour Chancellor Denis Healey once described an attack from Howe as "like being savaged by a dead sheep" - but his resignation speech is widely credited for triggering the process that led to Thatcher's downfall. Nine days later, her premiership was over.

Howe retired from the Commons in 1992, and was made a life peer as Baron Howe of Aberavon. He later said that his resignation speech "was not intended as a challenge, it was intended as a way of summarising the importance of Europe". 

Nonetheless, he added: "I am sure that, without [Thatcher's] resignation, we would not have won the 1992 election... If there had been a Labour government from 1992 onwards, New Labour would never have been born."

Jonn Elledge is the editor of the New Statesman's sister site CityMetric. He is on Twitter, far too much, as @JonnElledge.