June 6 - EU regulators are considering shifting Libor rate fixing - the basis for pricing $300 trillion worth of financial products - from London to Paris. Sonia Legg reports
$300 trillion is today's daily digit in Europe - that's the global value of financial products which rely on Libor. But the London Interbank Offered Rate, to give it its official title, may soon have to change its name. EU regulators are proposing shifting the supervision of Libor to Paris - where an EU watchdog is based. Two UK banks - Barclays and RBS - along with Swiss bank UBS were fined a total fo $2.6bln for rigging Libor. But any plan to move, will upset the UK's government. It's been carrying out a wide-ranging review of the flaghsip interest rate benchmark. It hoped it would restore faith in Libor, which forms the basis of everything from home loans to credit cards. Any move to Paris won't happen yet. The draft law isn't due to be published for a few weeks and it'll then need the approval on member states.