City under threat as EC plans to move LIBOR regulation to Paris

Supervision of the scandal hit LIBOR interest rate could move to Paris under plans being drawn up by the European Commission, dealing a potential blow to London's financial pre-eminence.

Brussels has drawn up proposals to formalise regulation of a range of pricing structures, from the LIBOR inter-bank lending rate to benchmarks for oil and gold, the Daily Telegraph reports. Under the plan, LIBOR would come under the supervision of the European Securities and Markets Authority, which is based in Paris. Any move out of London could be a cause of much embarrassment for the UK authorities, which have already had to admit to failure in allowing traders to rig the $300trn global market. Several banks, including Royal Bank of Scotland and Barclays, have already been fined...