Daily News: August 21, 2012

Secret Committee Clings to Anonymity After Rigging Scandal

Bloomberg noted in article on the LIBOR scandal that every two months, representatives from the world’s largest banks meet at an undisclosed location to review the LIBOR.

Bloomberg said who sits on the BBA’s Foreign Exchange and Money Markets Committee, the body that governs the benchmark for more than $300 trillion of securities worldwide, is a secret. No minutes are published. The BBA won’t identify any members, saying it wants to protect them from being lobbied, and declined to make the chairman available for interview, Bloomberg noted.

The article said the group’s lack of transparency is symptomatic of a self-regulated system that failed to stop traders around the world manipulating the world’s most widely used benchmark interest rate for profit.

To read the Bloomberg story, click here.