IMA calls for LIBOR to be saved but reformed

The Investment Management Association (IMA) has urged the Financial Services Authority to keep LIBOR in place but has called for the lending rate to be reformed.

The LIBOR scandal during the summer delivered another blow to the already damaged reputation of the banking industry, while shares in banks across the UK and abroad fell as their participation became clear. Barclays was at the centre of the debacle, with the FSA and US authorities fining the banking giant £290m. The FSA is understood to be considering scrapping the London Interbank Offered Rate (LIBOR) - which is currently not based on actual trades which have been carried out. There has also been talk of an independent body being created to oversee the system and prevent a similar...