BBA Members Vote Formally to Relinquish Operation of LiborLiam Vaughan
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.