A key interest rate for more than $500 trillion of securitiesworldwide will be replaced by a benchmark subject to greatergovernment control, according to a plurality of globalinvestors.
Forty-four percent of those responding to a quarterly BloombergGlobal Poll said the London interbank offered rate, known as Libor,will be supplanted by a more regulated model within five years.Thirty-four percent predicted the rate will continue to be set bybanks in the current fashion, while 22 percent said they didn'tknow.
Confidence in Libor has waned as authorities investigate whetherfinancial firms rigged the rate to profit on derivatives positionsand hide how difficult it was for them to borrow money duringcredit-market turmoil in 2008.
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