U.S.: LIBOR substitute for CFTC Chief based on observable transactions

By CPI | September 26, 2012

The top U.S. futures regulator on Monday renewed his call to replace the scandal-ridden London interbank offer rate as the key interest rate with a new system based on real, “observable” transactions. U.S. Commodity Futures Trading Commission Chairman Gary Gensler said that because Libor was based largely on estimates of the price banks pay to borrow from other banks, it was open to manipulation.