FRANKFURT Dec 8 German banking watchdog Bafin
is calling for far-reaching reforms in the setting of market
benchmark values such as Libor, its head of banking supervision
told a German paper, arguing for a more active government role.
"Reference prices that are only based on more or less random
estimates are not sound," Raimund Roeseler told Welt am Sonntag
in an interview for publication on Sunday.
"The most relevant figures also need to be checked by a
governmental body. It should not be left to the private sector
alone," he added.
The remarks come after the EU Commission earlier this week
slapped a record 1.7 billion euro ($2.3 billion) fine on six
financial institutions, including Deutsche Bank, for
manipulating the London Interbank Offered Rate (Libor) and its
euro equivalent Euribor.
The two interest rate benchmarks are used to help price
trillions of dollars of financial contracts globally.
The European Commission is also studying information about
possible manipulation of foreign exchange markets, even though
no decision has been made about whether to open a formal
"Currently, there is no indication that German institutes
did participate in manipulation on the foreign exchange
markets," Roeseler said.
Over the weekend, European Central Bank board member Joerg
Asmussen backed German Finance Minister Wolfgang Schaeuble's
call for governments to keep scrutinising the banking sector
despite complaints that they had already gone far enough.