Prime Minister David Cameron said today’s report proposing an overhaul of the Libor regime showed Britain is “taking action” to boost confidence in the finance industry.
“Financial services are a key industry for Britain and something we are respected for round the world,” Cameron told Sky News in Rio de Janeiro, Brazil, where he leading a trade delegation. “Let’s make sure we have a strong, safe and properly regulated financial services industry, but there is much more we can do to grow our manufacturing, our technology, our aerospace and that is what this government is doing.”
Oversight of Libor will be handed to the U.K.’s financial regulator, and dozens of the currencies and maturities that make up the benchmark axed, under proposals published by Financial Services Authority Managing Director Martin Wheatley today. The overhaul is designed to revive confidence in a rate tarnished by scandal.
Cameron said Britain needs to develop commercial ties with leading emerging markets as the country reduces its reliance of state spending and financial services.
“What I’m doing is what is vital for Britain which is linking us to the fastest growing economies in the world,” he said. “We have taken difficult decisions, we have had to make tough cuts to get our deficit down.”
In an interview with the newspaper Folha de Sao Paulo published yesterday, Cameron pointed out that the U.K. accounts for only 1.5 percent of Brazil’s imports while Germany accounts for 6.4 percent.