Libor abuse to become illegal

Ben Southwood
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THE COALITION yesterday made good on its promise to make the manipulation of key inter-bank interest rate Libor illegal, by inserting provisions into the Financial Services Bill currently before parliament.

The Financial Conduct Authority, the new city watchdog, will be given powers to force banks to make Libor submissions, and to create a code of conduct surrounding those submissions.

The government plans to remove the British Bankers’ Association as administrator of Libor.