gata.org / By Suzi Ring via Bloomberg News / July 27, 2017
Libor, the benchmark underpinning more than $350 trillion of financial products, will be phased out by the end of 2021 as U.K. regulators and banks look to replace the scandal-tarred indicator with a more reliable system.
Andrew Bailey, the head of the Financial Conduct Authority, said today that the rate isn’t sustainable because of a lack of transactions providing data. Libor became a byword for corruption after traders were caught manipulating the benchmark, leading to about $9 billion in fines and the conviction of several bankers.
“We do not think we will complete the journey to transaction-based benchmarks if markets continue to rely on Libor in its current form,” Bailey said in a speech at Bloomberg’s London headquarters. “Panel bank support for current Libor until end-2021 will enable a transition that can be planned and can be executed smoothly.” …
… For the remainder of the report:
The post LIBOR to end in 2021 as regulator says bank benchmark is untenable appeared first on Silver For The People.