Banking Law News

Wall Street Watchdog Joins Banks in Fretting About Zombie Libor

Dec. 11, 2019, 10:46 PM

“Zombie Libor” and “Libor apocalypse” are probably phrases that send chills down the spines of Wall Street traders. It turns out the terms are also triggering anxiety among swaps regulators.

U.S. Commodity Futures Trading Commission Chairman Heath Tarbert said Wednesday that his agency is tracking the threat of the London Interbank Offered Rate not entirely going away when banks are no longer required to provide submissions used to calculate it. That could lead to a situation in which the benchmark still exists, but isn’t a legitimate borrowing rate.

“To avoid a potential zombie Libor apocalypse, various proposals are currently being...

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