Could Glass-Steagall Act prevent Libor rate scandal?

The Libor scandal solutions are being discussed by the regulators in the US, the UK and the EU. Proposed Libor regulation options include abandoning Libor in its entirety, replacing it by the overnight swap index rate and making rate manipulation a criminal offense. Finally, replacing Libor could invalidate trillions worth of financial contracts that were based on the Libor rate. However, regulators fail to consider revising the structure of … [Read more...]