Merkel Allies Call for Tough EU Response to Libor-Fixing Scandal
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German coalition lawmakers demanded a tough stance on regulating Libor, with greater supervision to shine a light on the role of banks in setting the international benchmark at the center of a rate-rigging scandal.
The comments by two senior members of Chancellor Angela Merkel’s Christian Democratic Union party are the first indication of the German government’s response to revelations of banks’ manipulation of the London interbank offered rate, or Libor. Both lawmakers called for more transparency and the introduction of an overhauled system for rate-setting that allows for independent verification.