U.K. group vows to boost Libor oversight, no change to banks

NEW YORK ( MarketWatch) - The British Bankers’ Association said Friday it made no changes to which banks contribute to its panels to set the daily London inter-bank offered rate, or Libor, which is the benchmark for borrowing costs ranging from interest-rate futures to mortgage loans. In a press release distributed at about 6 p.m. in London, the group said it “will be strengthening the oversight of BBA Libor. The details will be published in due course.” Investors had been awaiting a plan by the organization to address concerns that some banks had been underreporting their borrowing rates at out of fear they would be penalized if outsiders thought they were paying more for funding because of financial strains.
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