Fed hosts meeting with banks, regulators on LIBOR alternatives

The Federal Reserve said it is hosting a meeting on Monday with banks and regulators to discuss the development of a reference rate alternative to LIBOR, the London interbank rate that was at the center of a global rigging scandal.

Expected participants in the discussion include Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), HSBC and central bank officials from England, Europe and Japan.

The Fed said that the meeting, held at the New York Fed, is a step toward implementing recommendations issued by a Financial Stability Board report in July.

(Reporting by Michael Flaherty)