US Libor panel finds possible legislative fix for transition block but runs into election-year delays

13 November 2019 8:24pm
A US Federal Reserve-sponsored Libor panel has identified a possible legislative fix for a seemingly intractable issue impeding a switch from the benchmark rate, but the approach is likely to run into election-year delays, panel members said.

The Alternative Reference Rates Committee will have to proceed on the premise that it won’t find a near-term New York State legislative solution to a vexing obstacle posed by derivatives cash contracts, said Brian Grabenstein of ARRC member bank Wells Fargo.