UK govt accepts full Libor reforms

18 October 2012

The British government has announced it will implement all the recommendations put forward in the recent independent review of the Libor system.

Martin Wheatley was commissioned by the Conservative-Liberal Democrat alliance to investigate how this interbank lending rate was working after it emerged in the summer that it had been manipulated.

For instance, Barclays was hit with a fine of around $450 million for its involvement in this scandal.

The government subsequently decided to permit a full inquiry into Libor practices and was adamant that any organizations or individuals attempting to rig the rate should be punished.

Following the completion of this review, the coalition has insisted "immediate steps" will now be taken to make sure those who use Libor can "have confidence in its integrity and the supervisory regime that underpins it".

Greg Clark, financial secretary to the Treasury, commented: "Changes to legislation will ensure that those that attempt to manipulate Libor face the full force of the law."

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development