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Report says people should be prosecuted if they fix Libor rate

28 September 2012 Last updated at 13:37 BST

A report into the Libor rate-rigging scandal says the system is broken and suggests its complete overhaul, including criminal prosecutions for those who try to manipulate it.

Its author, regulator Martin Wheatley, told the BBC that bankers guilty of fixing Libor in future could be jailed.

"Society has lost confidence in banks... and we need to restore that."

Libor is used as a benchmark for millions of transactions and determines some loan and mortgage rates.

Simon Gompertz reports.