Libor control may remain with London as Brussels has rejected its plan to put the scandal-mired Libor lending rate under the direct control of a European supervisor in Paris, according to Financial Times.
On 6 June 2013, PBI reported that London may be stripped of its control over the Libor lending rate and European Commission may hand over supervision to Paris-based European Securities and Markets Authority (ESMA).
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Financial Times reported that London will remain the primary authority for Libor, so as to implement its wide-ranging review to restore faith in the flagship interest rate benchmark.
The commission will promote a college of supervisors made up of representatives from across the EU to play a role in oversight.
"ESMA’s legally binding mediation is a key element of the achievement of co-ordination, supervisory consistency and convergence," the draft said.
During the draft amendments, Michel Barnier, the commissioner responsible for the plans, took account of both the strength of UK objections and the capacity of Esma to take on further responsibilities.
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By GlobalDataThe draft law no longer states a benchmark administrator or contributor should be liable for losses if they break the law.
The final plans will be published on 18 September 2013.
