Martin Wheatley, the incoming head of Britain's new market regulator, is
expected to recommend this week that the lobby body lose its supervisory role in
the setting of the rate. "If Mr Wheatley's recommendations include a change of
responsibility for Libor, the BBA will support that," the BBA said on Tuesday:
The review was announced following revelations three months ago that big banks
were had been attempting to rig Libor for years. The scandal led to a £290m fine
for Barclays, ongoing investigations into manipulation at other banks, criticism
of the rate and calls for a new benchmark that is more transparent and relevant
to the credit worthiness of banks. Sir Mervyn King, Governor of the Bank of
England, believes Libor has stopped working and should be replaced, while Mr
Wheatley, who is the chief executive-designate of the Financial Conduct
Authority, has said Libor rate-setting is “no longer viable”.
The BBA, a lobby group for banks, has been heavily criticised for its
oversight of Libor, which is used to price loans and transaction for businesses
and individuals worth more than $350 trillion globally. Libor is based on what a panel of banks expect to be charged rather than
measuring actual lending rates. It is not directly supervised by regulators in
Britain but has been overseen by the BBA since 1986. The Wheatley's review, due out on Friday, is expected to propose anchoring
Libor interest rates to real transactions, rather than rates which panel banks
believe they could borrow from their peers. (source telegraph.uk)
5 comments:
I am getting ready to feel very sad as I watch from Britain what is unfolding in France. There is another way of doing things than the rampant class arrogance of our British government who don't give a toss about the people who created their wealth for them in the first place. They stole it from us before and they are stealing it again. For example the people who created the NHS are not the private companies who are going to benefit from its dismantling but the dedicated doctors, nurses and ancillary workers who will get nothing. And I think we are about to see France go about dealing with the economic situation in another way. Perhaps in part because they had a revolution over there, we never did really. We are still subjects, they are citizens.
This blog is getting boring. It's obvious that the ability of central bankers to use monetary policy to paper over enormous fiscal holes is virtually limitless. Draghi has said as much, with his apocalyptic prognostications of "doing whatever it takes" and buy "unlimited" amounts of government debt.
Indeed. He'll save the Euro even if it means having to utterly debase and destroy it. Bravo.
And people saythat Marxist thinking has been expunged from Western political though?
If Greece is granted an extension, then these cuts and tax increases will be even worse in that they won't be spread, as is over the 4 years instead of the 2 because the extra 2 years will, we are told, create a "hole" of another 15 bn. Which has to be sucked out of the Greek economy.
What I fail to understand in my simple mind is the following: according to the infamous MoU this 11,9 bn (originally now at 15 and growing) was supposed to be what would put the Greek economy back on track and balance the budgets. So Greece is in effect implementing precisely that. So why then should an extension be required if we are in fact carrying out the measures that the troika decided would be what would pull us out of the rut?
The troika has got it wrong? This is also a big question for Samaras who portrays the extension as some incredible success on his part if granted. Since Mr PM you are in fact carrying out all the cuts and tax hikes prescribed by the troika originally so that Greece would be out of the woods by the end of 2014, what on earth do you need another 2 years for? Either you have all got it all terribly wrong, or else you are leading the Greeks up the garden path, or else there may even be something more sinister in mind like some dark satanic plot to eliminate the nation? (Joke) It's just that none of this makes any sense the way it is being presented.
Can someone explain this to me?
David Cameron has taken another step towards pledging a vote on Britain’s relationship with Europe should he win the next general election.
He also revealed that Britain would be opting out of a series of EU justice, crime and policing powers later this year as he tries to placate demands within his party to repatriate powers from Brussels.
Golden Dawn should be praised for the constructive and important role they are playing in protecting Greeks during such desperate times as these. While the leftists burn banks, vandalise buildings, attack the police and denigrate Greece's culture and history, Golden Dawn are actively seeking to improve people's lives and providing protection and comfort when nobody else will. Such initiatives can only be admired.
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