Oversight of Libor will be handed to the U.K.'s financialregulator, and dozens of the currencies and maturities that make upthe benchmark axed, under proposals designed to revive confidencein a rate tarnished by scandal.

The British Bankers' Association should be stripped of theresponsibility for managing the rate and other organizationsinvited to replace it, Financial Services Authority ManagingDirector Martin Wheatley said in London today. More than 100 Liborrates tied to currencies and maturities where there isn't enoughtrading data to set them properly should be scrapped, and a code ofconduct introduced for how lenders contribute to the benchmarkbacked by criminal penalties, he added.

“Governance of Libor has completely failed,” Wheatley said as heunveiled a report on the future of Libor. “This problem has beenexacerbated by a lack of regulation and a comprehensive mechanismto punish those who manipulate the system.”

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.