The Federal Reserve told a federal judge to not terminate LIBOR as requested by plaintiffs in a lawsuit, reinforcing that the ruling would pose a risk to financial stability and undermine years of global planning for a transition to alternative benchmark rates. In the federal lawsuit filed in San Francisco, plaintiffs assert the LIBOR benchmark is the work of a “price-fixing cartel.” However, Fed officials argued ending the rate by court order would disrupt the trading of financial contracts leading to “an avalanche of litigation,” and will likely harm consumers and businesses.

 

In relation to this case (McCarthy v. Intercontinental Exchange, Inc.), SFA was joined by other trade groups in filing a joint amicus brief explaining how bringing LIBOR to an immediate halt would have negative implications on financial markets around the world. To read our amicus brief, Click Here.

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