Bankers who set LIBOR to require FSA approval - reports

Senior bank staff overseeing traders who set LIBOR will need to be formally authorised by the Financial Services Authority (FSA) under new proposals to combat rate rigging, Sky News reports.

The stringent new rules follow a government-commissioned review into the LIBOR scandal, which saw traders manipulating the interbank lending rate for profit. The FSA’s Martin Wheatley (pictured), whose three-month probe into the LIBOR system will be published tomorrow, is to order urgent reform that will involve the FSA adding hundreds of City bankers to its "approved persons" list in order for them to continue their roles, according to Sky. Wheatley’s report will also outline tough new sanctions for those found trying to rig the benchmark interest rates, but will not look to scrap th...