Killing Off Libor Gets Real for Banks on Key Milestone Date
- New bonds and loans pegged to Libor must cease from Thursday
- BOE is increasing scrutiny, says bonuses could be at risk
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The U.K.’s efforts to disentangle itself from sterling Libor by year-end just went up a gear.
Starting Thursday, firms should stop issuing new loans, bonds and securitizations tied to the discredited benchmark, according to the Bank of England. It’s ramped up the pressure in recent days, warning bankers that continued use is a risk for business and could cost them their bonuses.