Every two months, representatives from the world’s largest banks meet at an undisclosed location to review the London interbank offered rate.
Who sits on the British Bankers’ Association’s Foreign Exchange and Money Markets Committee, the body that governs the benchmark for more than $300 trillion of securities worldwide, is a secret. No minutes are published. The BBA won’t identify any members, saying it wants to protect them from being lobbied, and declined to make the chairman available for interview.
“There is an apparent lack of transparency,” Wheatley said in a discussion paper published Aug. 10. The scrutiny provided by the BBA’s Foreign Exchange and Money Markets committee “doesn’t appear to be sufficiently open and transparent to provide the necessary degree of accountability to firms and markets with a direct interest in being assured of the integrity of Libor.”