Regulators worldwide are considering what their next steps are in regards to the Libor rate-fixing scandal that is swallowing a growing number of banks, in Europe as well as the UK.
Martin Wheatley of the UK’s Financial Services Authority discusses his plans to reform the Libor rate with Maryam Nemazee on Bloomberg TV’s The Pulse.
The UK Financial Services Authority (FSA) will today suggest scrapping LIBOR and replacing it with a borrowing rate based on actual trades, it has been reported.
US bank Berkshire Bank has sued 21 banks, among which Barclays, Bank of America and Citigroup, asking for damages over the alleged manipulation of the Libor rate.
Christian Clausen, group chief executive of Nordea and president of the board of the European Banking Federation has called for reform of Cibor, the interbank lending rate used by Danish banks.
Pat McFadden, member of the UK Parliament's Treasury Select Committee has suggested in an interview today that Barclays' former chief executive Bob Diamond is likely to be recalled to provide further testimony over the Libor scandal.
Dennis Cooper and Varun Zaiwalla, part of the litigation department at Zaiwalla & Co. Solicitors, warn that a recent court ruling in the UK suggests errant Libor traders will walk away from their jobs with full payment in lieu.
The latest briefing by the EC confirms that Internal Market and Services commissioner Michele Barnier is seeking amendments to legislation to criminalise manipulation of indices.