Regulator calls for 'urgent reform' on Libor
Tuesday 31 July 2012
The City regulator charged with picking up the pieces from the Libor scandal called for "urgent reform" yesterday as the Treasury published terms of reference for a rapid inquiry into the setting of the key interest rate.
The Financial Services Authority's (FSA) Martin Wheatley, pictured, will consider whether to use actual trading data from banks in setting Libor, rather than their best estimates of how much they would have to pay for funds in the market – making it less open to manipulation.
Mr Wheatley, chosen to lead a review after the scandal which engulfed Barclays and threatens to taint a host of other banks, will publish a discussion document on 10 August. Banks will have four weeks to respond before full recommendations are published in September as the Government looks to move quickly on reform.
The review will also consider alternative rate-setting processes and the financial stability consequences of a move to a new regime. It is also likely to beef up the powers available to regulators to tackle Libor abuse.
The Serious Fraud Office also said yesterday that it was satisfied existing criminal offences are capable of covering conduct in relation to the alleged manipulation of Libor rates. Its investigation covers a number of financial institutions, including Barclays and HSBC.
- 1 Kylie Jenner challenge: Bizarre lip suction device inspired by Kardashian sister goes viral
- 2 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 3 Katie Hopkins and The Sun editor are reported to police for incitement to racial hatred following migrant boat column
- 4 Bruce Forsyth backs assisted dying campaign: 'If I had Alzheimer's or dementia I would do something about it'
- 5 Giorgio Armani criticises the way some gay men dress saying 'a man has to be a man'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, int...