Libor to be overhauled as part of reforms, says FSA [View all]
Source: The Guardian
Libor is "no longer fit for purpose" the head of the panel set up by the government to review the benchmark interest rate will admit on Friday as he formally launches a month-long consultation intended to restore confidence in financial markets.
Martin Wheatley, a senior Financial Services Authority executive, will spell out that Brussels intends to make the manipulation of Libor a criminal offence and that his review will look beyond the interest rate markets to scrutinise other unregulated markets.
The review was prompted by the furore over the £290m fine imposed on Barclays for trying to manipulate the Libor rate. The discussion paper, launchedon Friday , makes clear that Barclays is "only the first of a number of investigations the FSA is carrying out into contributing banks".
Tracey McDermott, who was appointed to the role of head of enforcement at the FSA, has said that seven other institutions – not all banks – are being investigated. She was previously "acting" in the role.
Read more: http://www.guardian.co.uk/business/2012/aug/10/libor-overhauled-reforms
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