Gensler Expresses Renewed Doubt Over Libor Integrity

Libor and similar benchmarks are ‘unsustainable in the long run,' CFTC head says.

U.S. Commodity Futures Trading Commission Chairman Gary Gensler raised fresh doubt about Libor’s integrity as a market benchmark, saying banks’ reported borrowing costs remain distorted.

On 85 percent of occasions in 2012, the 18 firms that contribute to dollar Libor left the rate at which they said they could borrow in the interbank market unchanged, even as the cost of insuring their debt against default using credit-default swaps soared, Gensler, 55, said in a speech at the City Week conference in London today.

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