BoE’s King: Libor Has Ceased to Work

“LONDON (Reuters) – The Libor system as a measure of interbank lending costs has ceased to work since the financial crisis and a fix needs to be found to support existing contracts based on the rate,Bank of England governor Mervyn King said on Wednesday.

Britain has set out to reform the key interest rate that was rigged by a number of banks, including Barclays , in a transatlantic scandal that is threatening to seriously damage London’s reputation as a financial center.”

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