QUICK REVIEW: Britain's financial regulator on Friday is looking for quick answers from the banking industry on the London interbank offered rate (LIBOR), the interest rate index that has been subject of a global scandal
THE REQUEST: Martin Wheatley, managing director of the Financial Services Authority, said Friday he wants industry responses by Sept. 7 on how LIBOR is regulated and calculated so that proposals can be included in legislation now pending in Parliament.THE OUTLOOK: LIBOR, which has come under scrutiny since Barclays bank admitted manipulating rates, is determined by a self-policing system, whereby banks make a judgment of the rate at which they could borrow from other banks. The rate sets benchmarks for hundreds of trillions of dollars of contracts globally, including mortgages and commercial loans.
Source: http://www.businessweek.com/ap/2012-08-10/news-summary-uk-reviewing-libor-practices
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