FRANKFURT (MNI) – European Central Bank President Mario Draghi said
Thursday that a lot of work needs to be done to improve the functioning
of Libor rate-setting in the light of the scandal revealed at Barclays.
The manipulation of the Libor rate “shows that a process that was
considered fair and considered vital for the functioning of financial
markets was not fair,” Draghi told reporters after the ECB Governing
Council’s meeting here.
“Therefore, I think a lot of action ought to be undertaken to
improve the governance of this process at both levels – the level that
contributes to the figures, to the data and the level that produces the
benchmark,” he said.
“It’s quite clear that the governance in these two levels was weak,
if not faulty, and frankly I don’t know what the ECB would have done but
I hope we would have done better,” he quipped.
–London newsroom: 4420 7862 7492; email: ukeditorial@marketnews.com
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