During the transition of the London InterBank Offered Rate (LIBOR) to the approved substitute benchmark in the United States, the Secured Overnight Financing Rate (SOFR), a basic question was raised as to whether the new...more
4/23/2025
/ Bonds ,
Borrowers ,
Compliance ,
Financial Institutions ,
Financial Markets ,
Hedging ,
Interest Rates ,
Libor ,
Loans ,
Regulatory Requirements ,
Risk Management ,
Secured Overnight Funding Rate (SOFR)
During the London InterBank Offered Rate (LIBOR) transition, and post LIBOR’s end date of June 30, 2023, the goal for all should be that (1) the effective interest rates be generally economically equivalent as a result of the...more
3/25/2025
/ Banking Sector ,
Borrowers ,
Final Rules ,
Financial Conduct Authority (FCA) ,
Financial Institutions ,
Financial Markets ,
Financial Regulatory Reform ,
Interest Rates ,
IRS ,
Libor ,
Loans ,
Regulatory Requirements ,
Secured Overnight Funding Rate (SOFR) ,
UK
On October 1, 2024, the United Kingdom Financial Conduct Authority (UK FCA) phased out ‘Zombie’ LIBOR, as a transitional benchmark, with the move to alternative “risk-free” rates....more
2/6/2025
/ Banks ,
Benchmarks ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement ,
Financial Conduct Authority (FCA) ,
Financial Institutions ,
Financial Regulatory Reform ,
Fraud ,
Interest Rates ,
Libor ,
UK
Although July 3 was the first business day on which no USD LIBOR was published, many financial instruments will not reset until the next reset date, based upon the tenor of each instruments’ underlying benchmark, which could...more
Nearly 14 years ago, guidance was provided by federal regulators to facilitate commercial real estate loan work-outs.
Rather than ‘extend & pretend,’ regulators had encouraged, and are encouraging, banks to work with...more
Subject to appeal, ICE Benchmark Administration Limited (IBA) will be required to publish synthetic USD LIBOR beginning on July 1 so as to reduce any market disruption and maintain the orderliness of the financial system....more
LIBOR Relief Included In Appropriations Bill -
New York Law Concerns -
The New York law enacted in April 2021 provides the ‘Get Out of Jail’ card[2] for banks from litigation relating to the LIBOR (London InterBank...more
4/15/2022
/ Alternative Reference Rates Committee (ARRC) ,
Appropriations Bill ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Financial Institutions ,
Food and Drug Administration (FDA) ,
Interest Rates ,
IRS ,
Libor ,
Loans ,
New Legislation ,
Secured Overnight Funding Rate (SOFR)
This article summarizes the significant problems with the LIBOR transition in the US as compared to the UK (and the rest of the world).
This summary is based upon the keynote speech at the United Kingdom Financial Conduct...more
How challenging is LIBOR Transition proving to be in the US structured finance market?
Like street-corner proselytizers holding signs warning “The End is Near,” world markets, banks, and other financial institutions have...more
As part of the ongoing transition from the London InterBank Offering Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR) recommended by the Alternative Reference Rates Committee (ARRC) as an alternative rate, an...more
6/15/2021
/ Alternative Reference Rates Committee (ARRC) ,
CFTC ,
FDIC ,
Financial Institutions ,
Interest Rates ,
ISDA ,
Libor ,
OCC ,
Secured Overnight Funding Rate (SOFR) ,
Securities and Exchange Commission (SEC) ,
Sterling Overnight Index Average (SONIA) ,
UK
It was previously reported that there were significant repurchase agreement (repo) disruptions with consequent disruptions in the Secured Overnight Financing Rate (SOFR).
Explained -
During the market turmoil...more
Everything you need to know to be prepared for the LIBOR-SOFR transition.
What to Know -
It had been recommended that the US Dollar (USD) London Interbank Offered Rate (LIBOR) be replaced by the Secured Overnight...more
Financial institutions should work with outside counsel to ensure that their internal policies and external actions minimize conduct that may violate state and Federal laws and regulations, and incentivize employees to reward...more
12/3/2020
/ Affordable Housing ,
Antitrust Conspiracies ,
Breach of Contract ,
Class Action ,
Collusion ,
Department of Justice (DOJ) ,
Fannie Mae ,
Fiduciary Duty ,
Financial Institutions ,
Freddie Mac ,
Interest Rate Swaps ,
Internal Revenue Code (IRC) ,
Liquidity ,
Motion to Dismiss ,
New York ,
Popular ,
Price-Fixing ,
Securities and Exchange Commission (SEC) ,
Statute of Limitations ,
Tax Revenues ,
U.S. Treasury ,
Unjust Enrichment ,
Variable Rates ,
Whistleblowers
Last week, most observers focused on the more than 11% drop in the stock market due to public health and related supply concerns. In response, the Federal Reserve made an aggressive 50 basis point interest rate cut on March...more
Fed Liquidity – Recent Actual Infusions (1Q 2020) -
Week of February 3rd -
As recently reported, during the week of February 3rd, the New York Fed infused, through the repo market, an aggregate of $112.3 billion with...more
The following is based upon the Fixed Income Market Structure Advisory Committee Panel meeting held on Monday, November 5 entitled ‘LIBOR Transition Update and SOFR Volatility,’ and related statements from the Federal Reserve...more