BRIEFLY: LIBOR is over – so is ‘magical thinking,’ Fed supervisor tells group; Have a great holiday weekend!

(Oct. 8, 2021) LIBOR is coming to an end – for the most part, at the end of this year – and it’s time to stop “magical thinking” that it won’t, Federal Reserve Board Vice Chair for Supervision Randal Quarles said this week. In remarks to the Structured Finance Association Conference in Las Vegas this week, Quarles said the “reign” of the London Interbank Offered Rate (LIBOR) will end at year’s end “and it will not come back.” He noted that a handful of financial firms have said that they may want more time to evaluate potential alternative rates. “There is no more time, and banks will not find LIBOR available to use after year-end no matter how unhappy they may be with their options to replace it,” he said. Some credit unions use LIBOR as a reference rate, particularly for student loans … Monday is a holiday for some (Columbus Day/Indigenous People’s Day); have a terrific weekend!


Federal Reserve Board Vice Chair for Supervision Randal K. Quarles – Goodbye to All That: The End of LIBOR