We knew this Libor stuff was secretive and messy, but this is even more than we imagined.
Apparently, every two months the world’s biggest banks send unknown representatives to an undisclosed location to discuss the Libor, says Bloomberg. It’s a meeting of the British Bankers’ Association’s Foreign Exchange and Money Markets Committee, which sets the Libor.
So, to review, a group that governs a benchmark for over $300 trillion in securities world wide is totally secret, made of unidentified members, and keeps no minutes whatsoever.
You can check out their website here. It says (via Bloomberg):
Members are “highly experienced market participants” who are independent of the BBA “and any other organisation,” the website says. Still, all committee members act as “individuals representing their firms,” the BBA says. The chairman is also drawn from one of the banks that submit to the rates.
But we don’t know who that chairman is. And no one at any bank would tell Bloomberg anything about it.
So there’s that.