LONDON, England (AP) — A British regulator has outlined wholesale reforms to a key international rate-setting mechanism whose manipulation by Barclays bank was exposed in a scandal which erupted several months ago.

Financial Services Authority managing director Martin Wheatley says the London Interbank Offered Rate will undergo a complete overhaul.

Barclays chief Bob Diamond resigned after it was revealed his bank was fiddling with the rate, a key market index which influences the costs of a huge range of financial instruments.

Wheatley said in prepared remarks released Friday the rate-fixing scandal was an industry-wide problem which tore "the very fabric that our financial system is built on."

He accused the British Bankers' Association, which oversaw the process, of having clearly failed and said he was inviting other groups to take over the process.