Libor Should Be Based On Real Transactions, Gensler Says

Law360, Washington (February 26, 2013, 7:31 PM EST) -- As regulators mull a potential overhaul of the scandal-ridden Libor, U.S. Commodity Futures Trading Commission Chairman Gary Gensler on Tuesday urged exchanges and trade associations to support a revised benchmark interest rate based on real transactions, arguing it would add stability and integrity to their markets. 

According to Gensler, Libor and many similar rates are no longer grounded in real transactions, as unsecured bank-to-bank loans have diminished considerably after the 2008 financial crisis. That shift, coupled with the Libor rate-rigging scandal, have led to regulators to...
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