Martin Wheatley, who is leading a review for the U.K. Treasuryinto how Libor is governed, may recommend that bankers who makesubmissions to the benchmark should be regulated, said a personwith knowledge of the plans.

Employees who submit the estimates that are the basis of therate would become subject to approval by Britain's FinancialServices Authority, said the person, who asked not to be identifiedbecause the talks are private. Wheatley, a managing director at theFSA, is set to unveil his proposals on Sept. 28.

He began the review at the request of Chancellor of theExchequer George Osborne after Barclays Plc, Britain'ssecond-biggest lender, paid a record 290 million-pound ($470million) fine in June for manipulating the London interbank offeredrate. The British Bankers' Association, the London-based lobbygroup that oversees the rate, yesterday signaled it will give upresponsibility for the benchmark following claims tradersmanipulated the benchmark. Libor is used to set rates for at least$300 trillion of securities.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.