Libor Fix Wins House Support in Drive to Avert Market Chaos
- Bill would protect $16 trillion of deals that can’t transition
- Senate should now move quickly on law, says JPMorgan’s Pluta
This article is for subscribers only.
The U.S. House approved legislation designed to protect trillions of dollars of assets from chaos when Libor expires, in one of the final key steps aimed at guaranteeing an orderly transition from the discredited benchmark.
By a vote of 415-9, House lawmakers on Wednesday backed provisions to switch the most troublesome contracts, including mortgages, business and student loans, to a replacement benchmark in an effort to prevent a flood of litigation when dollar Libor retires. The bill will now head to the Senate, where its fate is uncertain.