Regulators meet banks to consider LIBOR overhaul

UK regulators and global banks are discussing an overhaul of interbank lending rates amid a probe into alleged manipulation of the benchmark.

The FT has reported Treasury officials, the Bank of England and the FSA met with financial institutions on Monday to begin a review process that may change the way LIBOR is set. The meeting comes after allegations that banks understated borrowing costs in order to artificially suppress the lending rate. Regulators in the US, UK and Japan have been investigating the alleged manipulation of the London Interbank Offered Rates and other benchmark price-setting rates for the past year. Traders from a number of investment banks in Europe and the US have been suspended or placed on leave ...