FSA’s Wheatley Said to Recommend Regulating Libor-Setters

UK Treasury review may suggest that bankers submitting estimates be overseen by the FSA.

Martin Wheatley, who is leading a review for the U.K. Treasury into how Libor is governed, may recommend that bankers who make submissions to the benchmark should be regulated, said a person with knowledge of the plans.

Employees who submit the estimates that are the basis of the rate would become subject to approval by Britain’s Financial Services Authority, said the person, who asked not to be identified because the talks are private. Wheatley, a managing director at the FSA, is set to unveil his proposals on Sept. 28.

Internal Review

The BBA started an internal review of the benchmark last year as banks started to disclosing that they were being probed by regulators over rate-rigging. As recently as June, that panel was set to resist calls to overhaul the rate by basing it on actual transactions and instead favored a beefed-up code of conduct and increased oversight, three people briefed on the talks said at the time.

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