ML-Implode News - Libor Funeral Set for 2021 as FCA Abandons Scandal-Tarred Benchmark

The U.K. Financial Conduct Authority will phase out the key interest-rate indicator by the end of 2021 afterÂ it became clear there wasn't enough meaningful data to sustain the benchmark that underpins more than $350 trillion in securities, Andrew Bailey, the head of the regulator, said in a speechÂ Thursday at Bloomberg's London office.
The end ofÂ the London interbank offered rate, or Libor, is welcome on many levels for regulators. It was tied to some of the banking industry's biggest scandals, leading to about $9 billion in fines and the conviction of several bankers forÂ manipulating the rate. Relying on the opinions of industry insiders to set the daily estimates based on interbank lending -- some in markets that saw fewer than 20 transactions annually -- was unacceptable, Bailey said.

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Libor Funeral Set for 2021 as FCA Abandons Scandal-Tarred Benchmark