The British Bankers' Association (BBA) appears likely to
give up control of oversight of LIBOR, subject to the findings of
Wheatley's FSA investigation into whether such oversight should
be under the control of regulators. According to press reports, the
council of the BBA passed a motion on 13 September to give up
control of oversight of LIBOR. Questions have been raised, however,
as to which body such responsibility for overseeing the rate should
be given, as there may be a conflict of interest with other
regulators or the Bank of England.
Royal Bank of Scotland is currently considering disciplinary
proceedings against some employees in relation to its LIBOR
investigations, including Jezri Mohideen, the bank's head of
yen products in Singapore. The bank commenced an internal
investigation two years ago, which is ongoing. Regulators are
probing certain parts of the bank's business, including
money-market traders, the swaps team and the foreign-exchange team.
One
