On January 20, Gov. Cuomo released his FY 2022 Budget Legislation which includes highly-anticipated proposed legislation providing a legal safe harbor for rate replacement needed to accommodate LIBOR transition for certain legacy LIBOR contracts. Consistent with SFA’s previous recommendation, the text reflects the ARRC’s legislative proposal.
In a letter to New York Governor Andrew Cuomo, Senate Majority Leader Andrea Stewart-Cousins, and Assembly Speaker Carl Heastie, SFA joined market leaders and industry groups in urging the state to consider a legislative proposal from the Alternative Reference Rates Committee (ARRC) that would provide clarity and promote financial stability as market participants prepare for the London Inter-Bank Offered Rate (LIBOR) to be discontinued. LIBOR is the benchmark index currently used, for example, to determine the interest rate that consumers pay on some credit cards, home equity lines of credit, reverse mortgages, and private student loans.
Thursday, December 10, SFA jointly filed an amicus brief with the Chamber of Commerce, SIFMA, ISDA, BPI, and LSTA, in the case of McCarthy v. Intercontinental Exchange, Inc., in the Northern District of California.
Following the July 2017 announcement by the U.K.’s Financial Conduct Authority that the London Interbank Offered Rate (LIBOR) cannot be assured following 2021, there has been significant discussion around replacement benchmark rates in financial markets.
Earlier this week, Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell testified before the Senate Banking (Dec. 2) and House Financial Services Committee (Dec. 3) oversight hearings on the Treasury and Federal Reserve’s response to the COVID-19 pandemic
SFA today released the following statement after the benchmark administrator for the London Inter-Bank Offered Rate (LIBOR) announced its intentions, subject to confirmation following an early December consultation, to cease the publication of the one week and two month U.S. Dollar (USD) LIBOR immediately following the December 31, 2021 publications, and the remaining USD LIBOR tenors immediately following the June 30, 2023 publications.
On Monday, November 30, the ICE Benchmark Administration (IBA) announced it would be releasing a consultation regarding the discontinuation of the one-week and two-month USD LIBOR immediately following the December 31, 2021 publication, and the discontinuation of the remaining USD LIBOR tenors following the June 30, 2023 publication.
On Wednesday, November 18, the Financial Conduct Authority (FCA) announced a consultation asking market participants to comment on how they intend to use some of the powers granted to them under the U.K.’s Financial Services Bill.
The Senate Banking and House Financial Services Committees heard from Prudential Regulators including Federal Reserve Vice Chairman Randal Quarles, FDIC Chairman Jelena McWilliams, Acting Comptroller of the Currency Brian Brooks and National Credit Union Administration Chairman Rodney Hood at hearings this week.