BBA set to be stripped of role in LIBOR setting

The British Bankers' Association (BBA) could be stripped of its role in setting the LIBOR interbank lending rate following the fixing scandal which saw Bob Diamond step down as the CEO of Barclays.

The banking lobby group is set to be replaced by a formal regulator which will oversee the rate at which banks lend to each other across global financial centres. FSA managing director Martin Wheatley (pictured) is expected to make an announcement on LIBOR on Friday, according to reports. He has previously said the interbank lending rate is “no longer fit for purpose”. He has proposed pegging the rate to actual market data, rather than subjective submissions from banks, and introducing formal regulation. The British Bankers' Association said: "If Mr Wheatley's recommendations inclu...