How then to deal with the complex system of setting rates for interbank lending, you ask. Wheatley suggests that a rate could be used that is based on actual trades, and regulated by an independent body, rather than the British Banker's Association (which was rather like asking the cat to guard the cream).
'Perhaps some sort of hybrid of transaction data and a hypothetical rate might prove most effective, using judgment to fill the gaps where and when data is scarce, within a specified framework,' he says.
The full details of Wheatley's recommendations will be released later today in the Wheatley Review. More on the story then.