Europe looking to take control of Libor

European Commission officials have drafted plans to take the scandal-hit key interest rate Libor from its current London base, the Financial Times reported on Thursday. Under proposals seen by the FT, the rate would be supervised in Paris by the European Securities and Markets Authority in a move likely to anger the British government. British regulators last month laid out plans for a new dual-track system combining survey-based rates and objective data to replace the current system. Barclays, Royal Bank of Scotland and UBS have paid over $2 billion to settle allegations they manipulated Libor to their advantage or hide their financial strains during the 2008 credit crunch. Libor, or London Interbank Offered Rate, is a flagship instrument used all over the world, affecting what banks, businesses and individuals pay to borrow money. It is calculated daily, using estimates from banks of their own interbank rates, and affects the pricing of more than $300-trillion of contracts across the world, according to regulators.