Regulator outlines overhaul of London Interbank Offered Rate
September 29, 2012, 12:01 am TWN
LONDON -- A British regulator has outlined wholesale reforms to a key international rate-setting mechanism whose manipulation by Barclays bank was exposed in a scandal which erupted several months ago.
Financial Services Authority Managing Director Martin Wheatley says the London Interbank Offered Rate will undergo a complete overhaul.
Barclays chief Bob Diamond resigned after it was revealed his bank was fiddling with the rate, a key market index which influences the costs of a huge range of financial instruments.