On 5 March 2012, it was reported that the British Bankers' Association (BBA) is to review the rate setting process for LIBOR. It has met with HM Treasury, the Bank of England and the FSA to consider the impact of future market and regulatory developments on LIBOR. Technical discussions with interested groups, including users of the rate, are expected to begin shortly. The following day, Mark Hoban, Financial Secretary to HM Treasury, confirmed in the House of Commons that the FSA, other UK authorities and EU anti-trust regulators were examining LIBOR.
The review comes amid press reports that some overseas regulators are conducting investigations into the alleged manipulation of LIBOR in price setting for certain financial products. In February 2012, the FSA announced its involvement with "significant cross-border investigations concerning alleged misconduct in relation to LIBOR". Influencing LIBOR, which is used to help establish the price for a range of financial products, would potentially have allowed banks to suggest they were in more robust financial health than was the case.
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