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Libor Funeral Set for 2021 as FCA Abandons Scandal-Tarred Rate

  • Bank lending no longer ‘sufficiently active’ to sustain Libor
  • FCA’s Bailey says decision not linked to past manipulation
Bloomberg business news

Andrew Bailey, chief executive officer at Financial Conduct Authority, explains the decision to end Libor in 2021 in favor of a more-reliable system. He speaks with Bloomberg's Francine Lacqua on 'Bloomberg Surveillance.' (Source: Bloomberg)

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Libor, the nearly 50-year-old global borrowing benchmark that became a byword for corruption, is headed for the trash heap of history.

The U.K. Financial Conduct Authority will phase out the key interest-rate indicator by the end of 2021 after it became clear there wasn’t enough meaningful data to sustain the benchmark that underpins more than $350 trillion in securities, Andrew Bailey, the head of the regulator, said in a speech Thursday at Bloomberg’s London office.