By Simon Miller

The British Bankers' Association (BBA) will support any stripping of its responsibilities relating to Libor, the group said last night.

Head of the Financial Services Authority's financial conduct unit Martin Wheatley is to release his findings into a review of Libor on Friday and is expected to offer a major overhaul of the bank lending rate which has come under fire since Barclays was fined for manipulating the rate.

In a statement last night, the BBA, whose role in collating the figures has also come under attack, said it was seeking to work with the Wheatley review team as they complete their consultation on the future of Libor.

The association continued: "If Mr Wheatley's recommendations include a change of responsibility for Libor, the BBA will support that."

On Monday, the chairman of the US Commodity Futures Trading Commission Gary Gensler called on a rate with observable transactions to replace Libor.

Speaking via video link to the European Parliament's Economic and Monetary Affairs Committee Gensler questioned whether Libor could be mended following Barclays' fine investigations into other banks involved in the setting of the inter-bank lending rate.

He commented: "I believe it is critical that benchmark rates rely upon observable transactions. A rate that relies upon observable transactions is anchored by the reality of that price discovery, A rate that relies on observable transactions has a lit path to credibility."

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