Libor: trustworthy?

[campbell]

http://www.ft.com/cms/s/0/27c4a71a-b...#axzz2TBQeygK8

Martin Wheatley, the UK regulator leading efforts to reform the London Interbank Offered Rate, told the Financial Times that a parallel system would provide continuity for holders of $350tn in existing contracts that reference Libor while also paving the way for a new benchmark tied more closely to objective data.

But the idea could set up a conflict with US regulators, who recently called for a “prompt” switch to transaction-based rates. Gary Gensler, chairman of the US Commodity Futures Trading Commission, which spearheaded the Libor probe, told the FT that the existing system was “unsustainable” in the long run because banks were not doing enough unsecured lending to make accurate estimates.
.....
Mr Wheatley, chief executive of the Financial Conduct Authority, said he believes market participants rather than regulators should make the final decision on how and when to scrap Libor.

good luck with that