Roots of Libor Scandal in Deregulation, Bair Says (Fortune)

Former FDIC chairman says deregulation left markets a “free-for-all.”

Sheila Bair, the former chairman of the Federal Deposit Insurance Corp., writes in Fortune that one factor that led to the Libor rate-rigging scandal was the Commodity Futures Modernization Act, passed in 2000, which took the off-exchange derivatives markets from the oversight of the Commodity Futures Trading Commission and left those markets without a regulator. The Federal Reserve had oversight over major dealers, but not the markets themselves, Bair says, leaving those markets “a free-for-all.”


For the full story.



Advertisement. Closing in 15 seconds.