UK reviewing LIBOR practices amid global scandal

LONDON -- Britain's financial regulator has launched a quick review of London interbank offered rate (LIBOR), the interest rate index that has been subject of a global scandal, raising questions on how it is regulated and calculated.

Martin Wheatley, the regulator's managing director, said Friday he was calling for industry responses by early September so that proposals can be included in legislation.

LIBOR has come under scrutiny since Barclays bank admitted manipulating rates. Several other banks are under investigation in multiple countries.

Wheatley says the regulator is considering whether LIBOR calculations should be taken away from the British Bankers' Association and placed in the hands of a regulated authority. He says there is a possibility that people who submit rates from various banks will be subject to clearance by the regulator.