(Reuters) – Britain’s government is expected to spell out on Monday the scope of a root and branch reform of Libor, the interest rate benchmark that was rigged by Barclays in a widening scandal that has damaged London‘s standing as a finance centre.
The UK Treasury is set to announce the remit for a review of the rate at which banks are willing to lend to one other that is being carried out by Martin Wheatley, a top official at the UK’s Financial Services Authority regulator.
Wheatley will look at how Libor is set and whether it should be based in future on actual transactions. He will also look to reform how the rate setting process is governed and how it should be supervised in future.
Currently, the rate is self-regulated by its sponsor, the British Bankers’ Association, a situation which has sparked a transatlantic blame game