“(Reuters) – Central bankers and regulators will hold talks in September on whether the troubled global Libor interest rate can be reformed or whether it is so damaged that the benchmark of borrowing costs should be scrapped.
Bank of England Governor Mervyn King told fellow central bankers in a letter that it was “very clear that radical reforms of the Libor system are needed”.
Fed Chairman Ben Bernanke and global financial regulator Mark Carney, who is also governor of the Bank of Canada, on Wednesday floated possible alternatives to the London interbank offered rate, which some bankers manipulated in the 2007-09 financial crisis.
“There are different alternatives if Libor cannot be fixed,” Carney told a news conference in Ottawa.”
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