The government body’s economic and monetary affairs committee is currently examining what steps should be taken to prevent “manipulation and establish integrity” in market indices, including Libor and Euribor. The committee will hold a hearing on interbank rate manipulation on Sept. 24, according to Businessweek.
The assembly is seeking input on “specific measures” that “should be taken at [the] European/global level to improve investor confidence.” Input must be received before Sept. 17.
Investor confidence in market indices took a hit after Barclays’ admission that it submitted artificially low interest rates in an attempt to manipulate the London interbank offered rate—commonly referred to as Libor.
Several other banks, including JPMorgan, Citigroup, Deutsche Bank, UBS, Royal Bank of Scotland and HSBC, are also being investigated in the scandal. Libor is a key benchmark rate used to price $500 trillion of securities, as well as other financial products and services, Businessweek reports.
Manipulation of Libor has far-reaching consequences, as it affects the interest rates paid by consumers on loans and credit cards. News of Libor manipulation has prompted public calls for tougher supervision and oversight in the financial system.