Banking Law News

Libor Deadline Poses ‘Huge Risks’ If Firms Don’t Tweak Contracts

July 14, 2020, 4:09 PM

Britain’s financial-market watchdog urged companies to take basic steps to prevent a cliff-edge scenario when the discredited Libor benchmark expires by the end of 2021, warning them of “huge risks” if they don’t.

Firms must commit to incorporating fallback language into their contracts so they can transition smoothly from Libor into replacement rates, said Edwin Schooling Latter, director of markets and wholesale policy at the Financial Conduct Authority.

The plan is emerging as a key way for firms to accomplish the move off Libor, which still underpins hundreds of trillions of dollars worth of financial assets worldwide.

Libor Was Largely...

To read the full article log in. To learn more about a subscription click here.