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Scandal-ridden City broker cut from David Cameron’s controversial resignation honours list

Former Tory party treasurer Michael Spencer has lost out on an honour over ethical concerns

A LEADING City broker embroiled in the Libor fixing scandal was scrubbed from David Cameron's resignation honour list because he didn't pass the "sniff test", sources claimed last night.

The former PM has twice attempted to get Michael Spencer, the former Tory party treasurer between 2006-10, in to the House of Lords - most recently in 2013.

 Michael Spencer has raised £70 million for the Tory party
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Michael Spencer has raised £70 million for the Tory partyCredit: Getty Images

But last night sources claimed he had been blocked due to ethical concerns over the banking scandal.

Friends of Mr Spencer claimed it was unfair because he had raised around £70 million for the Tory party and cash for charity.

 David Cameron has been accused of 'cronyism' over his resignation honours list
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David Cameron has been accused of 'cronyism' over his resignation honours listCredit: PA:Press Association

His firm ICAP paid out £55m in a settlement with the FCA in Britain and the US equivalent over the Libor scandal which saw traders accused of manipulating the borrowing rates.

Last night Lib Dem leader Tim Farron urged Theresa May to bring in an independent panel to award honours.

 Lib Dem leader Tim Farron has urged Theresa May to form an independent panel to award honours
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Lib Dem leader Tim Farron has urged Theresa May to form an independent panel to award honoursCredit: EPA

He said: “I am not for one minute questioning Mr Spencer, but I am questioning the judgement of leading Conservative politicians who clearly don't care how this might look.

“My criticism is not of individuals but of a system.

“Mr Spencer is chief executive of a spread betting firm, Icap, which was fined £55m for its role in the Libor-rigging scandal.

“I also note that in 2010 Mr Spencer agreed to pay a £4.7m tax bill after taking part in a scheme that allowed him to avoid millions of pounds in tax for nearly a decade."

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