BBA gives green light to Libor handover

THE British Bankers’ Association (BBA) has approved the handing over of running Libor rates to a new operator, after it was stripped of overseeing the benchmark last year.

The City watchdog stripped the banking lobby group from governing the benchmark last September.

An independent body will be selected by open tender, run by Sarah Hogg, to start running Libor this year.

"An extraordinary general meeting of BBA members has given its formal approval to the board to deliver the transfer of BBA Libor to a new operator which will be selected by the Hogg Committee," a BBA spokesman said today.

"The absolute priority is to ensure the provision of a reliable benchmark which has the confidence and support of all users, contributors and global regulators."

A Libor review by the Financial Services Authority in September laid out a plan to restore confidence in the interest rate.

Barclays, RBS and UBS have been fined a total of $2.6bn (£1.7bn) for rigging the rate.