Now that we are in 2020, it’s time to get serious about a significant milestone that is rapidly approaching. LIBOR, a key benchmark rate that is utilized by financial institutions all over the world, is going away at the end of 2021. The amount of work required to move all financial contracts tied to LIBOR to a different rate is daunting. One large global bank recently estimated that it will cost them hundreds of millions to address LIBOR transition. Making matters even more urgent, the New York Department of Financial Services issued a letter in December 2019 that imposed a deadline for all institutions operating in the state (which is everyone, of course!) to provide a LIBOR remediation plan and response by February.
Press release:
https://www.linkedin.com/pulse/sounding-alarm-350-trillion-problem-brad-hairston