Members of the British Bankers’ Association voted formally to relinquish operation of the London interbank offered rate in the wake of the rate-rigging scandal.
The BBA will transfer Libor to a new operator to be selected by a committee chaired by Sarah Hogg, chairwoman of the Financial Reporting Council, the London-based lobby group said in a statement today after an extraordinary general meeting of members.
British Regulators said in September they would strip the BBA of responsibility for the benchmark interest rate for more than $300 trililon of securities. Barclays Plc, UBS AG and Royal Bank of Scotland Group Plc have been fined more than $2.5 billion by U.S. and U.K. regulators for manipulating the rate, and more than a dozen more firms are still being probed.
“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,” the BBA said in the statement.