Libor benchmark interest rates are no longer "fit for purpose" and must be changed or replaced, Britain's regulator said on Friday as he set out proposals to restore their credibility


"The existing structure and governance of Libor is no longer fit for purpose and reform is needed," the FSA's managing director, Martin Wheatley, said in a speech in London.


Benchmarks would be based less on judgment and more on actual trades, he suggests. Banks could also be obliged to contribute to setting Libor to widen participation.

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