Lawyers pick holes in Libor statutory fix

US ‘tough legacy’ contracts open to legal challenge even if proposed New York law is passed

Federal-Reserve-Bank-of-New-York

Legislation designed to switch financial contracts referencing US dollar Libor to a replacement benchmark without exposing users to litigation could be challenged in the courts, legal experts say.

The Alternative Reference Rates Committee (ARRC), the Federal Reserve-sponsored group overseeing US benchmark reform, released a legislative proposal on March 6 to address the problem of ‘tough legacy’ contracts that are most stubbornly welded to Libor.

The planned law aims to provide immunity from

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