Gary Gensler, chairman of the Commodity Futures Trading Commission (CFTC), suggested that authorities should retool or replace the London interbank offered rate (Libor), the New York Times DealBook blog reported yesterday. Libor, a measure of how much banks charge each other for loans, underpins the cost of trillions of dollars in mortgages and other loans. "It is time for a new or revised benchmark - a healthy benchmark anchored in actual, observable market transactions - to restore the confidence of people around the globe that the rates at which they borrow and lend money and hedge interest rates are set honestly and transparently," Gensler said. In June, Gensler's agency leveled a $200 million fine against Barclays, accusing the British bank of trying to manipulate Libor.
