3.23.21
On March 23, during a House Financial Services Committee (HFSC) oversight hearing, Treasury Secretary Janet Yellen stated her support for federal legislation to facilitate a smooth transition away from LIBOR. “There are certain legacy contracts where the transition could be difficult without legislation. These are contracts that don’t provide for a workable fallback rate, so I think Congress does need to provide legislation for the LIBOR transition.” Her response was in agreement with Fed Chairman Powell who testified, when he last appeared before the HSFC, that federal legislation is “the best answer” to ease the transition away from LIBOR for tough legacy contracts.
SFA Press Release: ‘Clear Consensus’ on Need For Federal Legislation to Ease LIBOR Transition