Rebirth of England.

Chapter 678 LIBOR is in hand
"Congratulations, Your Highness, the Duke, LOMX Group has obtained the right to price LIBOR..."

Hearing the congratulations from Goldman Sachs President Lloyd Blankfein on the phone, Barron said calmly:

"Thank you for your congratulations, Mr. Blankfein, but this is also a heavy responsibility for the LOMX Group."

"Haha, but as far as I know, the Federal Reserve is somewhat dissatisfied with this, Your Highness."

"This is a matter between them and the British government... We are just the executors."

Before Barron left London last time, he talked with Finance Minister Darling about the formulation of LIBOR. After all, in his previous life, the LIBOR manipulation scandal eventually allowed the United States to gain the right to set LIBOR.

After that, the relevant regulatory authorities in the UK conducted an investigation into the pricing and supervision of LIBOR.

The final investigation results surprised Darling. He did not expect that the issue of some big banks manipulating LIBOR to make profits was more serious than he imagined.

This also strengthened the British government's determination to reform the LIBOR publication process.

But one thing is that the British side does not want to make a big deal out of this matter, lest the American side take the opportunity to intervene and thus fall behind in the competition for LIBOR.

Therefore, the British side did not make the specific investigation results public, but instead called a meeting with the London Banking Association and several related banks.

The end result was that the London Banking Association was deprived of its pricing and supervisory powers over LIBOR - after all, the results of the investigation showed that even if the London Banking Association did not directly participate in the manipulation of LIBOR, they at least condoned the occurrence of such a thing.

After all, they found that this kind of profit from manipulating LIBOR did not happen recently, but was already very serious a few years ago.

It also proves that the London Banking Association's pricing and supervision of LIBOR is almost non-existent.

It can be said that facing the British government's request, even if the London Banking Association was unwilling, it had no way to refuse, especially those banks. If Darling and others did not want to make the whole thing bigger and be taken advantage of by the Federal Reserve, then the largest banks in the UK, including HSBC Holdings, Royal Bank of Scotland and Barclays, would have received sky-high fines from the Financial Services Authority (FSA).

Now they have been handling this matter in a low-key manner. Apart from not punishing these banks too harshly - only a symbolic fine of no more than 5000 million pounds for each bank - they have even restricted media coverage of the matter.

Of course, at this time it is even less likely that the British side will hand over the pricing power of LIBOR to the NYSE's parent company Euronext as it did in the original time and space. The institution that ultimately prices LIBOR is the London Stock Exchange under the LOMX Group.

After this, the London Stock Exchange will re-establish the LIBOR pricing process, which will still be published by Reuters.

The original pricing process of LIBOR was that every trading day, the 16 large banks selected by the London Banking Association would each calculate and report the next day's borrowing interest rates, remove the lowest four and highest four quotations, and then calculate the average arithmetic value of the remaining eight banks' quotations, which would become the Libor of the day and be announced to the outside world by Reuters Group.

It now appears that the system is very easy to be interfered with, especially when multiple banks collude in collusion.

After taking over the pricing of LIBOR, the London Stock Exchange will mainly use two methods in the new pricing plan submitted to the British government in order to make the process more difficult to be "manipulated" -

The first is to increase the number of banks that collect quotes. They plan to increase the number of banks that quote on LIBOR setting from the previous 16 large banks to 25, and also add a backup list of 5 banks.

The London Stock Exchange will regularly rotate between the reserve list and the 25 quoting banks to make LIBOR pricing more reasonable. In addition, the LIBOR pricing mechanism will be changed. Specifically, the LIBOR price is not set by completely counting the quotations of the 25 quoting banks, but by randomly selecting 25 of the 20 banks' quotations, and then removing the 5 highest bids and the 5 lowest bids, and the average of the remaining 10 banks' quotations is used to set the LIBOR price for the day.

It can be said that their plan can, to the greatest extent possible, eliminate the possibility of collusion among multiple banks to manipulate LIBOR - after all, according to this plan, the possibility of such manipulation of LIBOR has been greatly reduced.

This time, the London Stock Exchange only obtained the pricing power of LIBOR. As for the regulatory power over LIBOR originally held by the London Banking Association, it was taken back by the British government. In the future, the Financial Services Authority (FSA) of Britain will directly supervise the pricing of LIBOR.

Of course, this time the London Stock Exchange obtained the pricing power of LIBOR, which still had a positive effect on Barron. At least his voice and influence in finance have also been improved accordingly.

……

"Long time no see, Cather."

"Yes Barron, perhaps I should say it's a pleasure?"

After getting back together with William, Cather continued to work at Harrods. After all, she was already one of the purchasing managers of Harrods, and this position was quite prestigious for Cather.

After Barron arrived at Harrods today, he made a point to meet with Cather, Prince William's girlfriend. In the eyes of his colleagues, this was very normal - after all, it is well known that His Royal Highness the Duke of Devonshire and Prince William are close friends.

Of course, this does not include Cather. After all, she knows that Barron, the Duke of England, is completely different from his gentle and elegant appearance in front of her and in front of the world.

"You don't sound like a friend, Miss Cather."

Barron walked to Cather's side and said with a smile.

"Friend? Do you regard me as a friend, or do you regard William as a friend? Is sleeping with me the way to be a friend?"

Seeing Cather's chest heaving and his emotional look, Barron shook his head:
"But you were not like this at that time, dear Cather. You kept shouting, "Go faster, don't..."

"Shut up, Barron."

Barron shrugged, pulled Cather into his arms, and whispered in her ear:

"Besides, how do you know if William really minds the fact that you slept with me? Maybe you can try to tell him and see how he reacts..."

"you……"

Seeing Cather's angry look, Barron laughed:
"What I'm curious about is, Cather, I remember you said that I was much better than him, so when you were with him, did you have any feelings? Or did you always imagine that you were with me at that time..."

(End of this chapter)