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The current Libor rate-setting system is no longer a "viable option,"
RenovationMan
Posts: 4,227 Forumite
http://www.bbc.co.uk/news/business-19203103
"Libor review: Wheatley says current state 'not an option'
Barclays was fined last month for trying to manipulate the Libor rates
Continue reading the main story Libor scandal
It has proposed pegging the rate to actual market data, rather than subjective submissions from banks, and introducing formal regulation.
Stronger sanctions to tackle abuse of the system are also included in the initial discussion paper, which aims to restore credibility.
Barclays was found to have tried to rig Libor rates over several years.
The review, headed by the managing director of the Financial Services Authority Martin Wheatley, is examining how the Libor rate, the benchmark interest rate for trillions of financial contracts, is calculated and regulated.
Interested parties will have four weeks to respond to the proposals.
The system is currently overseen by the British Bankers' Association, but is not formally regulated by the Financial Services Authority or Bank of England.
The Wheatley Review was established after Barclays was found to have tried to manipulate Libor rates, by putting in inaccurate submissions, resulting in a record £290m fine from both US and UK regulators.
Several other banks in other countries are also under investigation"
"Libor review: Wheatley says current state 'not an option'
Barclays was fined last month for trying to manipulate the Libor rates
Continue reading the main story Libor scandal
- Explaining the Libor scandal
- Barclays scandal: Key players
- Timeline: Libor-fixing scandal
- BBA 'warned weekly' about Libor
It has proposed pegging the rate to actual market data, rather than subjective submissions from banks, and introducing formal regulation.
Stronger sanctions to tackle abuse of the system are also included in the initial discussion paper, which aims to restore credibility.
Barclays was found to have tried to rig Libor rates over several years.
The review, headed by the managing director of the Financial Services Authority Martin Wheatley, is examining how the Libor rate, the benchmark interest rate for trillions of financial contracts, is calculated and regulated.
Interested parties will have four weeks to respond to the proposals.
The system is currently overseen by the British Bankers' Association, but is not formally regulated by the Financial Services Authority or Bank of England.
The Wheatley Review was established after Barclays was found to have tried to manipulate Libor rates, by putting in inaccurate submissions, resulting in a record £290m fine from both US and UK regulators.
Several other banks in other countries are also under investigation"
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Comments
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It has proposed pegging the rate to actual market data, rather than subjective submissions from banks proposals.
It's a good job we have these government commissioned reviews.
Why come to the obvious conclusion for free when it's possible to arrive at the bleeding obvious having spent a load of taxpayer money?0 -
It's amusing that they say that it's 'no longer' a vaible option. One wonders if it was ever really a viable option.0
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It's a good job we have these government commissioned reviews.
Why come to the obvious conclusion for free when it's possible to arrive at the bleeding obvious having spent a load of taxpayer money?
god isn't that the truth.
http://www.taxpayersalliance.com/waste'Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap.'
GALATIANS 6: 7 (KJV)0
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