The British Bankers' Association is accelerating its review of the Libor system as major discrepancies in the rates have emerged. The review, due May 30, might lead to an overhaul of the way the rate is calculated and also determine how quickly the industry is able to recover from the ongoing credit crunch. "You've got to fix Libor," said Tim Bond, head of asset allocation strategy in London at Barclays Capital. "You don't ever want to be in a situation like this again, where people can get away with quoting whatever rate they like. Real people get hurt like this."
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