Banking Law News

‘Time to Act Is Now,’ BOE Tells Firms Clinging to Tainted Libor

Jan. 16, 2020, 3:17 PM

The Bank of England has a message for financial businesses exiting the scandal-plagued Libor benchmark: Get moving.

It issued a statement on Thursday giving banks until September to cease issuing cash products linked to sterling-denominated Libor, a benchmark which underpins $30 trillion of financial contracts in sterling markets alone. The direction is part of a wider effort to speed up transition in the derivatives market before the benchmark expires at the end of 2021.

“There is a lot to be done,” said Simon Woods, a partner at Ernst & Young LLP. “Firms not being ready gives rise to commercial and...

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