FSA to suggest 'scrapping' LIBOR

In the wake of the recent LIBOR scandal, which has already seen Barclays fined £290m by US and UK regulators for manipulating the rate, the regulator will today set out a package of proposals designed to restore trust, the Financial Times reports. One of these will be to scrap the current system, replacing it with a borrowing rate based on actual trades, which could be overseen by a new independent body instead of the British Bankers' Association. Meanwhile, it will also consider introducing criminal sanctions for LIBOR manipulation, although it will makes clear this would be difficul...