Legislative qualitative manipulation of the benchmark interest rate behavior
 
Ongoing international investigation into manipulation of LIBOR behavior once again let people see the shameful acts of some banks, the scandal of bank manipulation of interest rates makes the sharp decline of public confidence. Therefore, the EU must take action to halt the banking crime, while criminal law can be a strong deterrent to plug the loopholes in the law to address such market abuses, "the European Commission said in a press conference held on the 25th.
 
The European Commission referred to the manipulation of events of interest rates, refers to Barclays Bank scandal. On June 27 this year, U.S. regulators announced the UK's second largest commercial bank, Barclays Bank from 2005 to 2009 attempt to manipulation and false reporting LIBOR and EURIBOR benchmark interest rate, and Barclays was the U.S. and British regulatory authorities fined $ 453 million dollars.
 
The European Commission said in a statement stressed that the amendments to crack down on insider dealing and market manipulation related to the EU legislative proposals to address market manipulation.
 
EU integration of new initiatives
 
The so-called interbank interest rate is between short-term funds in the interbank lending rates, they are released, the average inter-bank lending costs to determine, by a group of banks is one of the indicators depends on a number of central banks and various private investors.
 
LIBOR as the global financial industry-driven and core is calculated on the basis of other financial products, interest rates, affecting hundreds of trillions of dollars of securities, loans and financial derivatives cost, regularly artificially low pricing will lead to serious consequences.
 
Although all countries have laws relating to antitrust, against market operations, but is inconsistent with national standards. EU proposed legislation to severely punish control the behavior of interest rates, the relevant analysts believe that EU law is essentially against the domestic laws of the market operations into arrangements on a country from the international unity of action, there will be conducive to stability within the EU interest rate market.
 
Exist fall into the trap may
 
But there are also financial experts believe that the scandal has also exposed the serious flaws of the British financial system, the flaws of the system needs to repair itself. Manipulate the benchmark interest rate defined as a criminal offense, although it can serve as a warning, but not necessarily play to put an end to crime in the true sense of the Some ways, this artificial regulatory and defined may result in this mode under the LIBOR benchmark interest rate formation mechanism will gradually lose or gradually be replaced.
 
In fact, of LIBOR distortion in the occasion of the 2008 global financial crisis has shown very obvious, increasing the systemic risk of financial institutions, major banks are more willing each other to match the benchmark interest rate of LIBOR reported low to keep down the costs, and to conceal their own lack of mobility. The already shaky financial status of the city of London, The Barclays scandal exposure by U.S. regulatory agencies, the United States even more hope to the U.S.
 
Treasury yields as the benchmark of most of the financial markets, to gradually replace the London inter-bank lending market function and role. These experts believe that Barclays bank scandal does not rule out the possibility of deliberately provoke.
 
But there are also viewpoint, if you can not be completely cleaned up the connivance of a conflict of interest and illegal behavior in the London inter-bank interbank offered rate business environment, the British economy will be even more precarious.



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