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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Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.