Brits Plan LIBOR Reforms

In recent years, several banks have colluded to manipulate LIBOR, benchmark rates that underpin trillions in assets worldwide. Now, Martin Wheatley–managing director of Britain's Financial Services Authority–is unveiling a plan to stop them from doing it again. Due to publish his agency's full review on Friday, Wheatley previewed a number of key changes on Thursday. It may become mandatory for more banks to provide quotes to LIBOR, he said, in order to curb the ability of a few banks to move the numbers. Wheatley also suggested basing rates on real trade data, rather than self-submitted estimates.