The Libor and Euribor indexes are under intense scrutiny as regulators wind down the comment period and prepare to issue new rules that may overhaul the industry in the wake of the rate-rigging scandals.
The international task force formed by the International Organization of Securities Commissions (IOSCO) and comprised of Gary Gensler of the U.S. Commodity Futures Trading Commission (CFTC) and Martin Wheatley of the Financial Services Authority (FSA) is expected to close the comment period for its investigation on rate-rigging scandals by Feb. 11.
IOSCO says that it will likely create a code of conduct for price determination, but it also remains to be seen whether banks will retain the ability to set and report prices themselves. According to IOSCO, there may be conflicts of interest.
Meanwhile, Royal bank of Scotland is likely to retract prior bonuses and reduce current ones in order to pay for a forthcoming fine over its role in the Libor rate-rigging scandal.
The bank is also considering firing two senior executives upon the announcement of the settlement. According to Reuters, John Hourican, head of investment, and Peter Nielsen, head of markets, both may be asked to step down over the Libor scandal.
RBS, 80 percent of which is owned by the UK taxpayer, is taking stronger steps preemptive of (likely) harsh punishment from regulators than its rivals took prior to settling their penalties. Barclays recently paid $450 million for its role in the scandal.