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Regulator urges overhaul of 'broken' Libor system

28 September 2012 Last updated at 07:28 BST

A review of the Libor rate-fixing scandal has recommended a complete overhaul of a system that is "broken" and led to "shocking behaviour".

Financial regulator Martin Wheatley has said that bankers who try to manipulate the inter-bank interest rate should face prosecution.

He also wants the British Bankers' Association that supervises Libor to be stripped of the role, saying it "clearly failed".

In June, Barclays was fined £290m because its traders tried to rig Libor.

The BBC's Penny Haslam reports.