LIBOR May Be Stopped
Published / Last Updated on 09/08/2012
LIBOR May Be Stopped.
With all the problems in the news recently with LIBOR (London Interbank Offered Rate - the rate that banks lend to each other) and rate rigging, it seems the Financial Services Authority (FSA) has decided it may scrap LIBOR.
In new plans outlined by the FSA, LIBOR may go and be replaced by a new rule with a combination of actual transaction data and the predicted rates. The predicted rates will be overseen by a new independent body.
The new proposals will be published in a discussion paper today in the government's review of LIBOR. Hopefully the plan is to restore some trust in the financial system after the Barclay's LIBOR fixing which saw them with a heavy fine of £290m.