Federal Reserve

Fed to discuss Libor alternatives

The New York Federal Reserve building in New York.
Scott Eells | Bloomberg | Getty Images

The Federal Reserve will meet with market participants in New York on Monday to discuss alternatives to the London Interbank Offered Rate, or Libor, the interest rate used in short-term lending among banks.

In a press release, the central bank said it is interested in seeing market participants move toward other reference rates that are based on risk-free or nearly risk-free rates "based on a robust and liquid underlying market."

It added that "cases of attempted manipulation and false reporting, along with less liquid interbank unsecured funding markets, have undermined confidence in existing reference rates."

Regulators have fined banks billions of dollars for collaborating to rig contracts based on Libor rates.

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