BBA agrees to be stripped of role in setting Libor

Following a conspiracy by several banks to manipulate the London Interbank Offered Rate (Libor), the British Bankers’ Association said it would hand over control of Libor to another body if recommended by the Financial Services Authority. The BBA was not directly responsible for compiling the rate, but it has taken heavy criticism for the way it has run Libor. A report from the head of financial conduct for the FSA is expected Friday that could include a recommendation for a change of responsibility of Libor. Barclays is the only institution so far that has settled allegations that it attempted to manipulate the rate.