BBA prepared to surrender Libor control

The British Bankers Association are prepared to relinquish control of setting the Libor rate following a FSA announcement on Friday.

The managing director of the FSA, Martin Wheatley, is expected to announcement the results of a government-backed review of Libor, following the manipulation scandal

A spokesman for the BBA says: “The BBA seeks to work with the Wheatley review team as they complete their consultation on the future of LIBOR. If Mr Wheatley’s recommendations include a change of responsibility for LIBOR, the BBA will support that.”

Martin Wheatley has previously ruled out leaving Libor unchanged after the loss of credibility suffered in the wake of the scandal and has floated the idea of the creation of new benchmarks.

The European Commission made the first steps towards making the manipulation of the benchmark a crime in June