British finance regulator says Libor 'not fit for purpose'
LONDON (AFP) - London's Libor interbank interest rate is "no longer fit for purpose" and reform is needed in the wake of the rate-rigging scandal, Britain's financial sector watchdog said on Friday.
Mr Martin Wheatley, who heads the conduct regulation unit for the Financial Services Authority regulator and was appointed by the British government to review Libor, made the announcement at a press conference in central London.
"The way the use of Libor has evolved, as well as the findings from the investigations into its manipulation, highlight that the existing structure and governance of Libor is no longer fit for purpose and reform is needed," he told reporters at the presentation of his initial discussion paper.
The Wheatley review was also to examine potential reform of the current framework for setting and governing Libor. It will seek to work out the best way in which to tackle abuse, and examine whether policy changes are needed.