Fed Meeting With Major Banks, Regulators To Develop Libor Alternative

WASHINGTON – The Federal Reserve said Monday it is meeting with representatives from 15 banks as well as U.S. and foreign regulators to discuss the process for developing risk-free reference rate alternatives to the current London Interbank Offered Rate for use in derivative contracts. Regulators fined banks billions of dollars over colluding to set Libor-based contracts. The Fed said it's interested in working toward reference rates that are risk-free, or nearly risk-free, and that are based on a robust and liquid underlying market. The meeting will be held at the New York Fed include representatives from banks such as Bank of America , Goldman Sachs and J.P. Morgan Chase , with regulators including the U.S. Treasury, the Bank of England and the Bank of Japan

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