More States Step Up to Guide LIBOR Transition, Provide Stopgap Solution
Financial services attorney Douglas Youngman was interviewed by CFO Dive about the increasing pressure on federal lawmakers to pass a legislation that provides a replacement for the London Interbank Offered Rate (Libor). States like Georgia and Florida have introduced bills providing a substitute rate for Libor-legacy contracts. Mr. Youngman said these laws don't have provisions that specify the replacement rate, but because of growing concern that a federal legislation might not take place, states are taking action.
"[States are] starting to see this on the horizon, recognizing that they may not be able to wait for a federal solution and trying to come up with one that would at least cover their state," he commented.