Libor and Euribor should be replaced, US regulator says

04/22/2013 | Reuters · Wall Street Journal, The

Gary Gensler, chairman of the US Commodity Futures Trading Commission, says significant changes should be made to the calculation of interest-rate benchmarks, including the London Interbank Offered Rate and the Euro Interbank Offered Rate, as well as benchmarks tied to oil, gold and other commodities. "I believe Libor and Euribor are unsustainable in the long run. They threaten financial stability," said Gensler, who co-chairs a regulatory group focused on such benchmarks. He says Libor and Euribor should be replaced by alternatives that are based on actual transactions.

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