UPDATE 1-FSB's Carney wants Libor reform tackled by spring 2014

Thu Apr 18, 2013 4:58pm EDT
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By Louise Egan and William Schomberg

WASHINGTON, April 18 (Reuters) - Global regulators will provide more clarity in a year's time on guidelines for financial benchmarks like Libor, Bank of Canada Governor Mark Carney said on Thursday, after a global rate-rigging scandal led to calls for reform of the system.

Finance officials from the Group of 20 major economies plan to task the Financial Stability Board (FSB) - which Carney heads - with overseeing the reform of such benchmarks, two sources familiar with the situation told Reuters.

Carney also said the FSB, which coordinates regulators worldwide, might have a coordinating role in ensuring that any reforms to reference rates around the world live up to standards of transparency and good governance.

When asked how long it would take, he said it would probably be done by "next spring."

"I suspect this will consume a fair bit of time, and appropriately so, over the next year or so," he said at a Reuters Newsmaker event in Washington.

Authorities have probed more than a dozen banks in Europe, Japan and the United States over suspected rigging of the London interbank offered rate, or Libor, used in financial contracts worth hundreds of trillions of dollars globally.

Barclays, Royal Bank of Scotland and UBS have all been fined for manipulating Libor, and regulators this week came out with a wide set of standards such widely used benchmarks should meet.   Continued...