Fed’s Powell: Libor death is ‘big stability risk’
Speaking to Risk.net, Fed chair nominee flags Libor dangers for FRNs, loans and other products
The possible death of Libor presents a “big financial stability risk” if adequate back-ups are not put in place beforehand, Federal Reserve governor Jerome Powell has warned in an interview with Risk.net.
Banks that contribute to the family of Libor benchmarks have agreed to do so until the end of 2021, at which point the UK’s Financial Conduct Authority – which regulates Libor – will allow them to walk away. That arrangement was revealed by the FCA in July, injecting new urgency into global
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