Update re U.S. LIBOR Standards

In case you missed it, we want to alert you to one of FedFin’s time-critical reports that was sent over  the holidays:  LIBOR9, which details the Fed’s new alternate benchmarks as even harder bargaining over legacy contracts begins early this year.  As we note, the final rule is a faithful reiteration of much of what was in the law mandating it (see FSM Report LIBOR7), narrowing the range of disputes over who wins or loses via which benchmark replacement may or may not be contractually authorized.

US Agencies Raise Red Flag Before Crypto Exposures

Starting the New Year off with a crypto bang, the federal banking agencies today issued a very cautionary statement reiterating and broadening the risks attendant to crypto activities and the care banks need to take conducting them.  The statement also promises additional action, which we think very likely to include U.S. versions of the stringent new Basel standards.  We will shortly send clients our in-depth analyses of this global policy which now erects a strong firewall between banking organizations and all but the most carefully-structured, regulated cryptoasset exposures or activities.