The race is on to find new body to control Libor

Tim Wallace
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BANKS’ customers and regulators will decide which body should take over key interbank interest rate Libor, as the Treasury yesterday appointed a panel of senior figures to run the tender process.

The British Bankers’ Association has run much of the process in the past, but yesterday member banks agreed to pass control to a regulated body in the wake of the Libor manipulation scandal.

That regulated body will monitor submissions more closely to make sure they are based on real transactions, not estimates or manipulated figures.

Baroness Hogg is leading the committee which will run the tendering process.

It will meet this week to lay out the process, and hopes to appoint the next Libor runner this summer.

Other members include regulators, like the Bank of England’s Paul Fisher, the Financial Services Authority’s Martin Wheatley and the Treasury’s John Kingman.

Banks’ customers, who rely on Libor, are also included with Legal and General’s John Stewart, the Association of Corporate Treasurers’ Colin Taylor, the International Swaps and Derivatives Association’s George Handjinicolaou on the committee.