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Libor scandal: Review finds system 'no longer viable'

10 August 2012 Last updated at 15:05 BST

The way the inter-bank, or Libor, interest rate is set is no longer fit for purpose, according to a review by the Financial Services Authority.

The inquiry follows the revelation that Barclays and other banks rigged the rate, which is used as a benchmark for all kinds of financial transactions.

Emma Simpson reports.