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Officials at the state and federal level are writing fallbacks for some of the thorniest Libor-linked contracts into law. They might be inadequate.
Here’s why that matters.
Bankers worried about the risks of the replacement for global borrowing benchmark
Congress must act on the only viable solution as benchmark is phased out
UK regulators want to smooth shift to alternative benchmarks
Former UBS and Citigroup trader was first to be found guilty in global conspiracy to manipulate benchmark interest rate
Financial industry has been struggling to make the shift away from the US dollar rate
Benchmark underpinning $200tn in contracts will be published as late as 2023 under new plan
Financial institutions are under pressure to move faster on their switch from the scandal-hit benchmark
Reform of lending rate embedded in everything from mortgages to derivatives poses huge challenges
The London Interbank Offered Rate (Libor) became a cornerstone of the global financial system’s lending markets. As its death nears, it’s becoming increasingly apparent smaller businesses will bear the brunt of the pain.
Scandal-hit interbank lending rates need reform starting with greater accountability
Interest rate disparity could add nearly £2,500 per month to the cost of servicing a £5m mortgage
FCA increases pressure on CEOs to ‘take proactive steps’ to quit tainted rate
Central bank makes it tougher to borrow against the tainted benchmark
Setting a price would make it easier to run economic models and explain choices to voters
Banks have until September to stop issuing cash products linked to sterling benchmark
Financial Stability Board urges ‘significant and sustained’ work to adapt to new benchmarks
Pegging is naturally centralised.
Banker overseeing switch to Sofr says change is coming despite rate volatility
Anti-fraud agency criticised for not ending investigation sooner
And why ultimately everything’s conflicted in our highly specialised and esoteric financial market.
Central banker says banks should resist ‘sticking their metaphorical heads in the sand’
Call to speed up preparations for start of new €STR benchmark in October
Impending death of the benchmark poses complex problems