Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Bernanke Says Market-Based Rate Could Replace Libor as Benchmark

July 18 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said a number of market rates could replace the London interbank offered rate as a benchmark for lending rates.

There “still are problems with the current Libor system,” Bernanke told the House Financial Service Committee today in Washington during his semi-annual testimony to Congress. The index “doesn’t reflect actual market transactions.”

“One strategy would be to switch to a market-based indicator,” he said. Bernanke declined to endorse a specific rate, though he said possibilities include “repo rates, the OIS index, even potentially Treasury bill rates.” He was referring to the overnight indexed swap rate.

To contact the reporter on this story: Joshua Zumbrun in Washington at jzumbrun@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.