Libor Bill to Ensure Replacement Rate Introduced in N.Y. Senate

A bill introduced in the New York state Senate on Wednesday would establish a fallback benchmark for contracts tied to U.S. dollar Libor that lack language to deal with the benchmark’s end.

The legislation, set in motion by state Senator Kevin Thomas, could help keep trillions of dollars in securities and commercial transactions governed by New York law from becoming a lawsuit-riddled mess when the London interbank offered rate is discontinued at the end of next year. The fallback rate would be recommended by the Federal Reserve Board, the New York Fed, or the Fed-backed Alternative Reference Rates Committee, ...