Libor rate overhaul launched by UK regulator | Toronto Star
LONDON—"Libor benchmark interest rates are no longer “fit for
purpose” and must be changed or replaced, Britain’s regulator said on
Friday as he set out proposals to restore their credibility.
The initial review by the Financial Services Authority is the first
concrete step to reforming Libor after a rigging scandal that has
implicated global banks and hurt the reputation of regulators on both
sides of the Atlantic.
“The existing structure and governance of Libor is no longer fit for
purpose and reform is needed,” the FSA’s managing director, Martin
Wheatley, said.
“It’s completely untenable that we can go forward without some level of regulatory change,” Wheatley added.
The future of other benchmarks—for everything from oil and gold to stock prices—was also under scrutiny, he told a Bloomberg News event."
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