London interbank offered rate (Libor)

The UK Treasury has taken control of LIBOR away from the British Bankers' Association and handed it to New York Stock Exchange following the rate rigging scandal.

Supervision of the scandal hit Libor interest rate could move to Paris under plans being drawn up by the European Commission, dealing a potential blow to London's financial pre-eminence.

The UK FSA was aware that Libor rigging could pose a ‘significant issue’ to the UK’s banking system as early as 2008, an internal report has shown.

Laurence Lieberman, a partner in the financial disputes group at international law firm Taylor Wessing, says that banks should prepare themselves for forced participation in setting Libor rates.