Keeping Libor 'Not A Viable Option,' UK Panel Says

Law360, New York (August 10, 2012, 1:50 PM EDT) -- British regulators from the Financial Services Authority said Friday that the current system for setting the scandal-plagued Libor is “not a viable option” any longer and proposed that the process be strengthened, even as alternatives were explored.

Martin Wheatley, the head of a U.K. government team investigating options for reforming the Libor-setting system amid suspicions of rate-rigging by major banks, said in a discussion paper that the process for setting the key benchmark rate is riddled with weaknesses, including incentives for manipulation, lax oversight by the...
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