HM Treasury Launches Formal Inquiry on LIBOR
July 30, 2012
The UK Chancellor of the Exchequer has appointed Martin Wheatley, managing director of the Financial Services Authority, as head of an investigation into the framework for the setting of LIBOR. The review is set to focus on:
- Reforming the current framework for setting LIBOR;
- Civil and criminal sanctions for offences relating to the setting of LIBOR; and
- Whether similar measures should be taken with respect to other price-setting mechanisms.
It is anticipated that the review will report by the end of this summer, and that its recommendations will feature in the Financial Services Bill. A consultation paper on these points will be published on August 10, 2012.
In yesterday's newsletter, we published a copy of a complaint that had been filed against various banks for allegedly manipulating LIBOR.