FSA’s banking review is warned that trust may be beyond repair

PLANS to overhaul the interbank lending system, described as "no longer fit for purpose" by the City regulator, will not do enough to rebuild trust, it was claimed on Friday.
An initial discussion paper by Martin Wheatley, who heads conduct regulation for the
Financial Services Authority, outlined a number of proposals to change the way Libor is set.
Until now, membership of the Libor setting panel has been the preserve of a small group of banks, which volunteer daily estimates for the rates at which they would borrow different currencies for different periods, but the Wheatley... read more