The system at the center of the rate-rigging scandal will be overhauled as regulators respond to public anger over the manipulation of the London interbank offered rate, or Libor.
Martin Wheatley, the British regulator in charge of overhauling the rate-setting process, outlined plans Friday that could lead to wholesale changes to Libor, which is used as a benchmark rate for more than $360 trillion of financial products, including mortgages and loans. The reforms may lead to the scrapping of the current system, which is overseen by the British Bankers’ Association.
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