A key interest rate for more than $500 trillion of
securities worldwide will be replaced by a benchmark subject to greater
government control, according to a plurality of global investors.
Bllomberg reports that Forty-four percent of those responding to a quarterly
Bloomberg Global Poll said the London interbank offered rate, known as Libor,
will be supplanted by a more regulated model within five years. Thirty-four
percent predicted the rate will continue to be set by banks in the current
fashion, while 22 percent said they didn’t know.
Confidence in Libor has waned as authorities investigate
whether financial firms rigged the rate to profit on derivatives positions and
hide how difficult it was for them to borrow money during credit-market turmoil
in 2008….
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