Fed Meeting With Major Banks, Regulators To Develop Libor Alternative

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