A PYMNTS Company

Libor reforms do not include structural changes, acc. to Bloomberg

By  |  June 26, 2012

Bloomberg reports that the group proposing reforms to the Libor rate are resisting structural changes, such as basing the rate on actual trades or taking away oversight from the British Bankers’ Association (BBA). The group was established by the BBA and is comprised of U.K. bankers and regulators. The changes they propose are incremental, and include a code of conduct for banks and greater scrutiny over time. Imposing deeper changes would jeopardize invalidating trillions of dollars of contracts.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Libor is currently determined by estimates, not real trades: banks are asked to estimate how much it would cost for them to borrow from each other. Regulators in the U.S., Canada, and elsewhere are investigating bank collusion to manipulate Libor rates.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    Full content: Bloomberg

     

    Related content: Interview: Update on ”Screens for Conspiracies and Their Multiple Applications”

     

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.