Ask us first before swapping Libor with ‘risk-laden’ rate, says UK watchdog Banks should ask the Financial Conduct Authority before using “credit sensitive rates” for replacing Libor, the tarnished benchmark which is being scrapped in December, the watchdog said on Monday. The London Interbank Offered Rate or Libor is being ditched after banks were fined for trying to manipulate the rate for pricing mortgages, loans and derivatives worth trillions of dollars across several currencies globally. Most contracts are being switched to “risk-free” overnight rates compiled by central banks, such as Sofr from the U.S. Federal Reserve and Sonia at the Bank of England.