Cantor 'bullying and domineering'

A CITY brokerage today insisted the defection of three brokers from rival Cantor Fitzgerald had nothing to do with the September 11 terrorist attacks that crippled the firm.

Cantor Fitzgerald lost well over 600 brokers in last year's atrocity and the firm became a symbol of the suffering caused by the outrage. But London's High Court has heard allegations that Cantor's leading rival, Icap, was attempting to exploit the tragedy.

Internal company emails from Icap group chief executive, Michael Spencer, allegedly exposed a systematic poaching plan was carried out while Cantor was raising money for the orphans and widows of the 658 dead employees.

The judge was told that three key brokers - Edward Bird, Spencer Gill and Luigi Boucher - did eventually leave Cantor for Icap in April this year before their contracts expired. All three worked on Cantor's interest rate divisions desk.

But Andrew Hochhauser QC, for Icap, told the court today that September 11 had nothing to do with the acquisition of the three brokers. He said: 'This has nothing to do with September 11. The evidence has made clear that its impact on the interest rates desk was minimal.'

Mr Hochhauser said his clients had suffered with 'domineering and bullying' management. He added: 'The unilateral variation of the contracts was completely unacceptable.'

Icap, the parent company of Garban-Intercapital, earlier said all three former Cantor employees were claiming constructive dismissal by Cantor.

The judge was also told that there had been an exodus from that particular Cantor desk and Icap was not the only firm brokers had transferred to.

Earlier Andrew Hillier QC, appearing for Cantor, said the company now wanted damages from the three brokers for breaking their contracts and the return of a loan extended to Mr Gill and bonuses paid to all three.

Cantor is also asking the judge to order Icap to pay damages for inducing the brokers to breach their contracts and an injunction to ban Icap from approaching Cantor employees for the next six months.

Mr Hochhauser said a key issue was 'whether there has been a repudiatory breach of contract by Cantor in relation to its staff'.

'If it has, then they (his clients) are entitled to leave like numbers of staff on that desk did.'

He added: 'Bullying is the hallmark of Cantor. Undue pressure is precisely what occurred here. To link these events to September 11 in 2001 and the collapse of the twin towers is completely and utterly unjustifiable.'

Mr Hochhauser said to focus on the tragedy in America was a 'travesty of the truth.'

He added: 'We are looking at London, at a time when the effect of what happened in America was minimal.'

The hearing was adjourned until tomorrow.