Bernanke urges rethink on 'flawed' LIBOR

Ben Bernanke, chairman of the US Federal Reserve, branded LIBOR "structurally flawed" in his first remarks since Barclays was fined £290m for attempting to rig the inter-bank lending rate.

In an economic update in which he painted a gloomy picture for the US economy, Bernanke (pictured) said central banks would need to join forces to restore LIBOR's credibility or its future will be in doubt. "The LIBOR system is structurally flawed," Bernanke said. "It is a major problem for our financial system and for the confidence in the financial system ...